Binance to Allocate 20% of New Intakes to Compliance Plan in 2024

Binance is preparing for a significant expansion in its workforce with a focus on strengthening its compliance team.

The cryptocurrency exchange plans to add 1,000 new employees before the end of 2024. Of this figure, 20% will go to its compliance unit to solidify the company's regulatory structure due to stricter scrutiny.

Binance Compliance Expansion Plans

The move to expand its compliance workforce comes as Binance's annual regulatory expenses surpass $200 million. This substantial amount proves the rising cost of meeting the requirements of global financial regulations.

Binance's CEO, Richard Teng, revealed this strategic move in an interview with Bloomberg on August 21. Notably, Teng has a background in financial regulation and believes compliance is vital for business growth.

During the interview, the CEO emphasized the necessity of growing the company's compliance capabilities. He cited the team's move by the end of the year.

Binance currently controls over 5,000 employees spread across over 100 locations globally. Teng said the expansion will go beyond just strengthening the firm's compliance workforce. They also employ more hands in the customer service unit.

The CEO, formerly a senior regulatory staff at Singapore's central bank, will visit the US to meet with officials after a settlement deal with the Department of Justice. The settlement deal involved paying a $4.3 billion penalty and compliance monitoring.

However, the CEO remained silent about any discussions with the SEC, which sued Binance and its ex-CEO CZ in 2023 over securities law violation, among other allegations.

While these claims are vigorously contested, the defendants seeking dismissal, Teng reaffirmed Binance's determination to fight the accusations.

He promised that the company would continue its mission of providing users with a secure and compliant trading environment.

Teng Promises Unwavering Services to Users

In a post on the social media platform, Teng highlighted Binance's unparalleled investment in creating a secure ecosystem. He noted that the company has received numerous requests from law enforcement agencies worldwide, which has increased to 63,000 inquiries this year, compared to 58,000 in 2023.

The amount of resources, talent, and effort that #Binance invests in proactively creating a more secure ecosystem is unparalleled.

If you ask me, "Why Binance?" This is definitely one of the reasons. We always put the well-being of users and the industry first.

- Richard Teng (@_RichardTeng) August 21, 2024

These requests underline the increasing demands on Binance to cooperate with global authorities in combating financial crimes. One notable collaboration occurred in Macau, where Binance partnered with the Macau Judiciary Police to launch an anti-crypto scam campaign.

Additionally, Binance recently reported success in reclaiming or securing over $73 million in funds stolen through hacks this year, demonstrating its proactive approach to safeguarding user assets.

Meanwhile, the focus on compliance is not exclusive to only Binance. Tether, a leading stablecoin issuer, is also ramping up its compliance efforts, announcing plans to double its workforce to 200 by mid-2025.

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