Binance Holdings Ltd. is set to hire 1,000 employees in 2024, with a significant focus on compliance roles. This move comes as the crypto exchange spends over $200 million annually on regulatory requirements, including oversight from US authorities under a plea deal. Chief Executive Officer Richard Teng, currently visiting the US, revealed the hiring plans in an interview with Bloomberg.
More Plans on Improving Compliance
Teng emphasized Binance’s commitment to improving compliance amid increasing scrutiny from law enforcement agencies. The firm’s workforce is expected to reach 700 compliance officers by the end of 2024, up from 500 today.
This is part of the company’s response to a plea agreement with the US Justice Department and other agencies, which included a $4.3 billion penalty for regulatory failures that enabled criminals to misuse the platform.
According to Teng, a former senior regulator at the Monetary Authority of Singapore, Binance now spends far more on compliance than it did two years ago ($155 million).
Law enforcement is submitting more and more demands to the company’s compliance staff; as of 2024, 63,000 requests have been made. To guarantee compliance with rules and keep an eye on its financial transactions, Binance is collaborating with US monitors from Sullivan & Cromwell and the Forensic Risk Alliance.
Binance’s activities are currently being examined by US monitors, and Teng acknowledged that “we’re very early in the journey.” The heightened compliance initiatives are a reflection of Binance’s attempts to resolve concerns brought up by authorities and stop bad actors from abusing its platform in the future.
Regulatory Challenges Keep Following
The majority of the SEC complaint against Binance and its billionaire co-founder Changpeng “CZ” Zhao can move forward, a judge decided in June. In 2023, the SEC filed a lawsuit against Binance and Zhao for violating securities laws, mismanaging client funds, and deceiving investors and authorities.
The defendants requested that the case be dismissed to refute the allegations. Teng declared that Binance would keep refuting the charges. Teng succeeded Zhao as CEO of Binance when Zhao resigned as part of the plea agreement in the US. Zhao was later given a four-month prison sentence.
Three cryptocurrency investors have also filed a new class-action complaint against Binance and CZ, claiming that the exchange’s failure to stop money laundering prevented them from recovering their stolen assets.
The plaintiffs claim their cryptocurrency was stolen and that the thieves sent the money to Binance to “remove the connection between the ledger and their digital assets,” rendering the assets untraceable.
Future Plans and Headquarters Uncertainty
Binance has tightened its procedures under Teng’s direction, including modifications to its interactions with prime brokers and more stringent rules for token listings.
The business has not yet announced the location of its worldwide headquarters or released fully audited financial reports despite these measures. A headquarters might be situated in one of three cities: Dubai, Abu Dhabi, or another nameless city.
Binance continues to turn a profit despite these obstacles. The company’s growth is in response to the cryptocurrency market’s recovery, which has reversed job losses that occurred during the weak market of 2022.
To accommodate rising trade volumes, the additional staff will perform customer service positions in addition to compliance roles.