The world’s largest crypto exchange, Binance, is reportedly planning to ramp its headcount by 1,000 this year, with at least 20% of the new staff focused on compliance.
The move comes as the company’s annual spending on meeting regulatory requirements surpassed $200 million.
Speaking to Bloomberg on Aug. 21, Binance CEO Richard Teng, who has a background in regulation, outlined these goals, stating that the firm aims to increase its compliance workforce to 700 by the end of 2024, up from 500.
Binance currently employs more than 5,000 people in over a hundred locations, according to the company website. Teng said the hiring spree will also include customer service roles.
Teng, a former senior regulator at Singapore’s central bank, is currently visiting the United States, where he is meeting with officials following a plea deal with the Justice Department.
The plea deal includes a $4.3 billion penalty and ongoing compliance monitoring.
However, he declined to say whether he met with the Securities and Exchange Commission — which sued the company in 2023 — during his trip.
In a post on X on Aug. 21, he said, “The amount of resources, talent, and effort that Binance invests in proactively creating a more secure ecosystem is unparalleled.”
Source: Richard Teng
He noted that Binance had received a growing number of requests from law enforcement agencies worldwide, totaling 63,000 so far this year, up from 58,000 in 2023.
One of these was in Macau, with Binance reporting on Aug. 20 that it had teamed up with the Macau Judiciary Police to launch a joint anti-crypto scam campaign. Earlier in the month, it reported that it had successfully reclaimed or secured more than $73 million in funds that were stolen through hacks so far this year.
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Leading stablecoin issuer Tether is also on a compliance hiring spree, stating earlier this month that it plans to double its workforce to 200 by mid-2025, with a focus on its compliance.
Meanwhile, Binance and its former CEO Changpeng “CZ” Zhao are still in hot water with the SEC for allegedly violating securities laws, among other accusations.
The claims are being contested, and the defendants asked for the case to be dismissed. Binance and CZ will continue to fight the accusations, said Teng.
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