The world’s largest cryptocurrency exchange, Binance, has announced somewhat of an ambitious plan to hire 1,000 new employees this year, much of which will be driven by efforts to strengthen its compliance efforts.
Facing rising regulatory scrutiny, especially from the United States, Binance is going to zero in on compliance roles, seeking at least 20% of those new positions to be filled by professionals with a dedicated focus on compliance.
Binance Increases Spending On Compliance
The urgency to make these hires stems from Binance’s annual spending on compliance, now over $200 million, which has dramatically surged from just a few million a few years ago—quite an investment toward doing things the right way.
It’s something the company’s chief executive, Richard Teng—an individual with a long history of regulatory experience—reiterated in a recent interview. He added further that workforce compliance will increase from 500 to 700 by the end of 2024. This is not related just to compliance, as this hiring spree includes customer service; it represents an overall strategy aimed at enhancing operational efficiency.
Binance is hiring 1,000 people this year with many earmarked for compliance roles as the crypto exchange’s annual spending to meet regulatory requirements tops $200 million https://t.co/71PdU1QvLf
— Bloomberg (@business) August 22, 2024
Teng’s visit to the United States comes after the plea deal with the Justice Department in which the penalty was as huge as $4.3 billion. The deal dragged Binance onto the regulatory radar and needs a solid compliance structure.
Impact On The Global Scale
The efforts put in by Binance are not only recruitment-oriented; it extends to active cooperation with law enforcement agencies. This can be attested to by its cooperation with Macau’s Judiciary Police in fighting crypto scams. In relation, Binance also shared that it has recovered over $73 million in funds that were stolen earlier this month. It shows the commitment to user protection and platform integrity.
The global cryptocurrency exchange landscape is changing so rapidly that Binance is not the only one on a hiring spree. Tether, the largest issuer of the stablecoin, announced that it would be doubling its staff count to 200 by mid-2025.
The new staff would basically be working on compliance. This signified a change in the sector toward compliance with regulations, as crypto exchanges continue to draw a lot of attention from global authorities.
Present And Ongoing Legal Issues
Despite these rather proactive measures, it seems Binance cannot keep itself out of the arm of the law. The SEC filed charges against the exchange and former CEO Changpeng “CZ” Zhao for the alleged sale of unregistered securities.
As the company pushed back on these allegations, the ongoing fight versus regulators added an extra layer of complexity to its operations. Teng stated Binance would battle such accusations but highlighted the company’s resilience when facing crises.
Featured image from FinanceFeeds, chart from TradingView
Source: https://bitcoinist.com/binance-hires-1000-staff-to-expand-compliance-team/