Binance, the world’s largest cryptocurrency exchange, is set to significantly increase its workforce, hiring 1,000 new employees this year. This expansion is primarily driven by the company’s rising compliance costs, which have now reached $200 million annually.
In a recent interview with Bloomberg, Richard Teng, CEO of Binance, revealed that the company intends to expand its compliance team from the current 500 to 700 by the end of 2024. Teng emphasized the crucial role that regulatory agencies play in the company’s operations, reflecting his background in regulation.
The substantial increase in compliance expenditure follows Binance’s recent $4.3 billion settlement with the U.S. Department of Justice and other federal agencies. This settlement was part of a plea deal in response to allegations that Binance was involved in facilitating criminal and terrorist activities.
Binance has reported a rise in compliance-related requests from law enforcement, with 63,000 such requests this year compared to 58,000 in 2023. This uptick underscores the growing regulatory scrutiny facing the exchange.
Under Teng’s leadership, Binance has undertaken several operational adjustments, including revising its token listing criteria and altering its relationships with prime brokers. The company is also considering relocating its global headquarters, with Dubai or Abu Dhabi emerging as potential new locations.
Despite these regulatory challenges, Teng assured that Binance remains profitable. The expansion in staff aims to enhance customer service and navigate the evolving regulatory landscape as the cryptocurrency market recovers.
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