- Of the 1,000 new employees Binance is looking to add this year, 20% will be dedicated to getting its compliance team in check.
- Reports have it that Binance's CEO, Richard Teng, is said to have flown into the US over the weekend to sort out regulatory concerns and a $4.3 billion fine.
- Up to 63,000 compliance answers were submitted by Binance to law enforcement in 2024 alone.
Binance, the world’s largest cryptocurrency exchange, plans to add 1,000 workers this year. About 20% of those will be engaged in compliance, the business claims. It is going to grow from 500 to 700 before the end of 2024, and so the business has to spend over 200 million USD every year on compliance.
Leadership and Legal Challenges
All three are part of the goals set by Binance CEO Richard Teng, in his interview with Bloomberg, on August 21. It is his visit to the United States after submitting his plea to the Department of Justice, through which Teng agreed to continuous monitoring for compliance with a $4.3 billion fine.
While Binance only has close to 100 sites and around 5,000 employees, the recruiting campaign will take that number up a notch. The number of employees would double for the compliance team, including filling in the vacant spots in customer support.
In an interview, Teng mentioned that he had met with several regulators during his US tour, but he did not talk about his discussions with the Securities and Exchange Commission. SEC charged Binance with violating securities laws last year.
Ongoing Compliance Efforts and Industry Trends
On August 21, Teng posted on Facebook, mentioning the security and compliance Binance had constantly reiterated, and reiterating the message that this year alone Binance had accommodated 63,000 demands from law enforcement, as against 58,000 in the whole of 2023.
Macau Judiciary Police and the exchange have taken on cooperation for an anti-crypto-fraud effort. Earlier in August, Binance notified the public that it had seized approximately $73 million worth of pilfered funds on its platform.
One of the largest stablecoin issuers, Tether, is also seeking to increase the size of its compliance team. It has plans to add 200 more members to its compliance staff by the middle of next year.
SEC is continuing the investigation of Changpeng Zhao, former CEO of Binance. Securities law violations are among the accusations. Binance and Zhao have both disputed these allegations and asked that the lawsuit be dropped. Therefore, the exchange's expansion plan is a reflection of its proactive efforts to meet regulatory concerns.
The post Binance Beefs Up Compliance Team Amid $4.3 Billion Penalty and Regulatory Review appeared first on Crypto News Land.