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% going to compliance roles.

Richard Teng, who took over the running of Binance in late 2023 as the exchange’s new chief executive, shared those plans in an Aug. 22 interview with Bloomberg. He revealed that the exchange plans to expand its workforce by 1,000, with the compliance department getting an extra 200 people.

At the moment, Binance’s compliance workforce is made up of 500 employees, and the company has reportedly spent more than $200 million to meet regulatory requirements, particularly in the United States.

Teng stated that since the beginning of 2024, Binance had fielded more than 63,000 requests from law enforcement authorities, beating the 58,000 it dealt with in all of 2023.

Binance boosts compliance efforts under U.S. supervision

Binance’s compliance push stems from a recent plea deal 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 penalty for the exchange.

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

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

The monitoring agencies have already appointed agents to assess Binance’s financial statements and transaction tracking. However, Teng admitted that Binance’s crypto compliance journey was still in its infancy.

Despite its push for compliance, Binance still faces charges by the U.S Securities and Exchange Commission for allegedly breaking securities laws, misleading investors, and mishandling clients’ funds. However, the crypto exchange has vowed to fight the charges.