Binance to Hire 1,000 Employees for Compliance Roles
World leading exchange Binance has plans to recruit at least 1,000 employees this year. This is according to a Thursday report by Bloomberg detailing Binance’s focus on compliance roles. The decision to go on a hiring spree comes at a time when the annual spending of Binance to meet regulatory requirements has exceeded $200 million. In an interview with Bloomberg, company CEO Richard Teng has attempted to explain the reason behind the firm’s focus on compliance roles. According to Teng, Binance continues to face regulatory battles from all sides. That is not to mention the current oversight from the U.S. agencies following a settlement of $4.3 billion last year. For Teng, though, staying in compliance would not be a big deal per se. He is well versed in financial regulation and has severally reiterated Binance’s commitment to meeting regulatory requirements. Binance Seeks to Expand Compliance Workforce Presently, Binance boasts a compliance workforce of about 500 individuals. However, the exchange plans to take that figure up to 700 by the end of 2024. This expansion is in line with the growing number of law enforcement requests that the firm receives. For context, Binance has received 63,000 such requests so far this year. Whereas, it only received 58,000 of those throughout 2023. Furthermore, there is the issue of compliance spending, which has surged significantly from $158 million two years ago to over $200 million annually. This includes all costs from US-appointed monitors, Forensic Risk Alliance and Sullivan & Cromwell, who keep track of Binance’s financial statements and transactions. Here’s Why The exchange might be going big on compliance. However, its regulatory woes may have made that a necessary choice. Binance continues to face a series of legal challenges, including a widely-publicised lawsuit from the Securities and Exchange Commission (SEC). There is also the issue of one of Binance’s top executives, in the person of Tigran Gambaryan, who was arrested in Nigeria in February over allegations bordering on illegality and tax evasion. In April, there were reports of former Binance CEO Changpeng Zhao being sentenced to four months in prison. That was after he pled guilty to violating the U.S. anti-money laundering laws. Teng remains very focused on compliance and has made several changes along the line since he took over the mantle of leadership from Zhao. Adjusting how the company works with prime brokers, tightening requirements for listing new digital tokens, and spinning off its venture arm are some of the most notable changes he has implemented so far.
