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Binance is hiring, plans to hire 1,000 additional people for compliance roles

Vaseline August 22, 2024

Key Points

Binance is expanding its compliance staff to 700 by the end of 2024.
The company’s annual spending on compliance has risen to more than $200 million.

Binance plans to hire 1,000 employees this year, with a focus on compliance roles, as the cryptocurrency exchange’s annual spending on compliance exceeds $200 million.

The company’s CEO Richard Teng revealed the hiring goals during an interview with Bloomberg News in New York on Wednesday. The hiring initiative comes as Binance faces increased regulatory scrutiny and continued scrutiny from U.S. agencies following a $4.3 billion settlement last year.

Teng, who has a background in financial regulation, emphasized the importance of government agencies and Binance’s commitment to meeting regulatory requirements.

The exchange plans to expand its compliance staff to 700 by the end of 2024, up from the current 500. This expansion reflects the growing number of law enforcement requests Binance is receiving, which has reached 63,000 so far this year, compared to 58,000 in 2023.

Teng: “I’ve been a supervisor all my life”

The company’s compliance spending has increased significantly, from $158 million two years ago to over $200 million annually. These expenses include costs associated with U.S.-appointed monitors, Forensic Risk Alliance and Sullivan & Cromwell, who review Binance’s financial statements and transaction tracking processes.

Binance continues to face legal challenges, including an ongoing lawsuit from the Securities and Exchange Commission (SEC). In June, a judge ruled that most of the SEC’s case against Binance and co-founder Changpeng Zhao could move forward. Teng stated that Binance would continue to fight the allegations.

Earlier this year, Teng called for the release of compliance officer Tigran Gambaryan, who is being held in Nigeria on suspicion of illegal transactions.

In April, former Binance CEO Changpeng Zhao was sentenced to four months in prison after pleading guilty to violating US anti-money laundering laws.

Sapphire

Since becoming CEO following Zhao’s departure, Teng has implemented several changes at Binance. These include adjusting the way the company works with prime brokers, tightening the requirements for listing new digital tokens, and spinning off its venture arm. However, the company has yet to formally appoint a headquarters or release fully audited financial statements.