Global — Binance, the world’s largest cryptocurrency exchange, is set to significantly enhance its global compliance operations by hiring approximately 1,000 new employees by the end of 2024. This strategic move is part of a broader effort to address ongoing regulatory challenges and strengthen its compliance framework worldwide. Of the planned hires, around 200 positions will be specifically focused on compliance.
The exchange has committed over $200 million this year alone to bolster its regulatory compliance efforts. This initiative follows a series of legal challenges that Binance has faced in various jurisdictions, particularly in the United States. In 2023, Binance entered into a plea agreement with the U.S. Department of Justice (DOJ) after facing criminal charges related to its failure to prevent illicit activities on its platform. The agreement resulted in a significant $4.3 billion penalty. However, Binance continues to face legal scrutiny, including an ongoing lawsuit with the U.S. Securities and Exchange Commission (SEC) over allegations that the exchange offered financial securities without proper registration.
To further address these compliance issues, Binance has enlisted the services of Forensic Risk Alliance and Sullivan & Cromwell to conduct a comprehensive review of its financial statements and transaction tracking systems. This oversight aims to ensure that Binance adheres to global regulatory standards and enhances its operational integrity.
Binance’s regulatory challenges extend beyond the United States. In Brazil, the exchange faced accusations of operating a fraudulent pyramid scheme and has been previously banned from offering derivatives products. To resolve these issues, Binance has agreed to pay $1.75 million to settle with Brazilian regulators. Additionally, in India, Binance recently settled a $2.25 million penalty with the Financial Intelligence Unit, which has allowed the exchange to resume operations in the country.
Currently, Binance’s compliance team consists of 500 members dedicated to preventing illicit activities such as money laundering and fraud on the platform. In 2023, this team processed over 58,000 law enforcement requests, with the number of requests rising to 63,000 so far in 2024.
Richard Teng, Binance’s CEO, highlighted the critical importance of regulatory compliance, stating, “Government agencies are important.” Teng, who has a strong background in regulatory roles—including serving as a senior regulator at the Monetary Authority of Singapore and as CEO of the Financial Services Regulatory Authority at Abu Dhabi Global Market—has been leading Binance’s efforts to improve compliance.
Under Teng’s leadership, Binance has implemented several key changes, such as introducing stricter criteria for listing new cryptocurrencies and separating its venture arm into an independent entity. The upcoming hiring surge also includes roles in customer service, reflecting a comprehensive strategy to enhance both user experience and regulatory compliance.
