Binance’s big compliance move: 1,000 new hires amid U.S. scrutiny
Binance goes all-in on compliance
Binance, the world’s largest crypto exchange, is ramping up its regulatory efforts as U.S. scrutiny increases. The company plans to hire 1,000 new employees in 2024, with many focusing on compliance. Binance spends over $200 million each year to meet regulatory expectations.
CEO Richard Teng recently visited the U.S. to meet with regulators and is now focused on tackling the company’s compliance challenges. This year, Binance handled 63,000 law enforcement requests, up from 58,000 in 2023. The compliance team will grow from 500 to 700 by the end of 2024.
This action follows a U.S. plea deal, which cost Binance $4.3 billion for past compliance lapses. The company is now under close watch by the Department of Justice and the Financial Crimes Enforcement Network. Oversight from Forensic Risk Alliance and Sullivan & Cromwell will ensure compliance improvements.
Binance is also dealing with a legal battle with the SEC. The SEC alleges that the company mishandled customer funds and committed other violations. Despite these setbacks, Teng believes Binance remains profitable. The company is considering Dubai, Abu Dhabi, and another city as potential global headquarters.
This hiring push aligns with the crypto market’s recovery, which has boosted trading volumes. Binance is also refining its operations by working with prime brokers, tightening token listing rules, and spinning off its venture arm. Even with the challenges, Binance remains focused on growth and retaining its top spot in the crypto industry.
At PixelPai, we see this as a positive step forward and are encouraged by the strides Binance is making. Compliance and regulation should not be checkpoints, but the base for ongoing growth and trust in the Web3 space.
