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 as Binance’s new chief executive in late 2023, shared this plan in an Aug. 22 interview with Bloomberg.
Teng revealed that Binance intends to expand its workforce by 1,000 employees, with the compliance department getting an additional 200 people.
Currently, Binance’s compliance workforce consists of 500 employees. The company has reportedly spent over $200 million to meet regulatory requirements, especially in the U.S.
Teng stated that since the beginning of 2024, Binance had fielded more than 63,000 requests from law enforcement authorities, surpassing the 58,000 it handled in all of 2023.
Binance boosts compliance efforts under U.S. supervision
Binance’s compliance push results from a recent plea deal with the U.S. Department of Justice, the Financial Crimes Enforcement Network, and other U.S. authorities, resulting in a $4.3 billion penalty for the exchange.
Authorities 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 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 from the U.S Securities and Exchange Commission for allegedly breaking securities laws, misleading investors, and mishandling clients’ funds. The crypto exchange has vowed to contest these charges.
