700-Strong Compliance Team by 2024

Binance plans to hire 1,000 new employees this year, with a substantial focus on compliance roles. A large portion of these hires is specifically aimed at expanding the company’s compliance team from its current 500 members to 700 by the end of 2024.

CEO Richard Teng, who is currently in the US for discussions with monitors and officials, shared these hiring targets in an interview with Bloomberg News in New York on Wednesday.

Focus on Compliance

Bloomberg’s report revealed that Binance is estimated to allocate over $200 million this year solely for regulatory compliance, including expenditures related to the US plea agreement with the Department of Justice (DOJ) and other agencies.

The 55-year-old exec disclosed plans that Binance has seen a surge in requests from law enforcement agencies across the world, with 63,000 inquiries so far this year, compared to 58,000 in 2023.

Hence, compliance-related spending, which was $158 million two years ago, is expected to rise further. Teng also mentioned that US-appointed monitors from Forensic Risk Alliance and Sullivan & Cromwell have started their oversight, focusing on assessing the company’s financial statements and transaction tracking. This monitoring is still in its early stages, the exec added.

For the uninitiated, Teng has served as a senior regulator at the Monetary Authority of Singapore as well as at the city-state’s SGX stock exchange. He was also appointed as the chief executive officer of the regulator at Abu Dhabi’s International Financial Center.

Highlighting his extensive background in regulation, Teng stated,

“I’ve been a regulator all my life. Government agencies are important.”

However, Teng refrained from confirming whether he had met with the Securities and Exchange Commission (SEC) during his current trip, as the securities regulator had sued Binance in a separate lawsuit for allegedly offering financial securities without necessary registration.

Regulatory Woes in the US

Binance was ordered to pay $4.3 billion in fines after a US judge approved the plea agreement in February as a settlement with the DOJ and other US agencies for compliance failures that allowed criminals and terror groups to exploit the exchange.

As part of the agreement, Binance will undergo years of compliance monitoring by the DOJ and the US Treasury’s Financial Crimes Enforcement Network (FinCEN).

Last week, Binance announced resuming its full operations in India after agreeing to a $2.25 million penalty with India’s Financial Intelligence Unit. Additionally, the exchange reached a $1.75 million settlement with Brazil’s SEC, which had banned its derivatives products in 2020.