Binance to boost compliance efforts with 1,000 new hires in 2024

Binance will reportedly increase its workforce by at least 1,000 new employees by the end of 2024, with 20% of them going into compliance roles.

Richard Teng, who will take over the helm of Binance as the exchange’s new CEO in late 2023, shared these plans in an interview with Bloomberg on August 22. He revealed that the exchange plans to increase its workforce by 1,000 people and that 200 more people will be added to its compliance department.

Binance’s compliance team currently consists of 500 employees, and the company reportedly spends more than $200 million to meet regulatory requirements, particularly in the US.

Teng noted that Binance has received more than 63,000 requests from law enforcement since the beginning of 2024, exceeding the 58,000 requests it handled in all of 2023.

Binance steps up compliance efforts under US scrutiny

Binance’s compliance effort stems from a recent settlement with the U.S. Department of Justice, the Financial Crimes Enforcement Network, and several other U.S. authorities that resulted in a $4.3 billion fine being imposed on the exchange.

Authorities had accused Binance of violating the Bank Secrecy Act, operating as an unlicensed money transmitter business, and failing to maintain an effective anti-money laundering program.

As part of the agreement, the DoJ and FinCEN will monitor Binance’s compliance efforts for the next five years. Binance founder Changpeng Zhao has also resigned from his role as Binance’s CEO.

Watchdogs have already appointed representatives to assess Binance’s financial statements and transaction tracking, but Teng admitted that Binance’s crypto compliance journey is still in its infancy.

Despite its push for compliance, Binance is facing accusations from the U.S. Securities and Exchange Commission that it violated securities laws, misled investors and mismanaged customers’ funds. But the crypto exchange has vowed to fight the charges.