Binance to Hire 1,000 New Employees Focused on Compliance

Binance plans to add 1,000 employees in 2024, prioritizing compliance roles as the company faces increasing regulatory challenges. Richard Teng, Binance’s CEO, announced this during a visit to the U.S. on Wednesday, where he engaged with regulatory monitors and officials. Teng, who has a background in financial regulation, emphasized the need to strengthen compliance.

“We’re very early in the journey,” Teng said, revealing that compliance expenditures have exceeded $200 million this year and continue to rise. According to Teng, Binance’s compliance team is expected to grow to 700 employees by the end of 2024, up from the current 500.

Richard Teng’s extensive experience in regulation has been crucial in his rise within Binance. Before joining the company, Teng held key positions at the Monetary Authority of Singapore and the Abu Dhabi Global Market. He joined Binance in 2021 as head of operations in Singapore, later taking on responsibilities across the Middle East, North Africa, and Europe. His regulatory expertise is critical in Binance’s navigation of its legal obligations and regulatory scrutiny.

“I’ve been a regulator all my life. Government agencies are important,” Teng remarked when discussing his approach to leading the company. He did not confirm whether meetings with the U.S. Securities and Exchange Commission (SEC) occurred during his visit. The SEC has ongoing legal action against Binance, separate from the exchange’s plea deal with the U.S. Department of Justice (DOJ).

Binance’s decision to expand its compliance workforce follows the plea deal reached in November 2023, in which the company and its former CEO, Changpeng Zhao, admitted to multiple charges. The deal resulted in fines exceeding $4.3 billion linked to violations of the Bank Secrecy Act and other regulations. The exchange is now under ongoing monitoring by U.S. authorities, with compliance overseen by appointed monitors from the Forensic Risk Alliance and Sullivan & Cromwell.

Teng also noted that Binance has seen a near 10% increase in law enforcement requests, rising from 58,000 in 2023 to 63,000 this year. “They’re going to do an assessment,” Teng said, referring to the work of the appointed monitors, who oversee the company’s financial practices and transaction monitoring.

Binance faces regulatory challenges in Canada, the United States, and Japan, including a ban by the Financial Intelligence Unit (FIU) for non-compliance with local laws in India. After fines and tax disputes, Binance registered with the FIU in August 2024, aiming to rebuild trust and comply with regulations.

Lawrence does not hold any crypto asset. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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