As the cryptocurrency world continues to evolve, leading exchanges are increasing their commitment to regulation to ensure long-term progress and customer trust. Binance, currently the largest exchange by trading volume globally, exemplifies this model by significantly expanding its compliance team and investing heavily in compliance.

The exchange knows that maintaining protection and trust is key to future success. While innovation is happening rapidly, protecting users remains a priority.

Significant growth in compliance staff

Binance has significantly ramped up its compliance operations in an effort to keep up with growing regulatory demands. By meticulously increasing its full-time compliance staff by 34% over the past year, the exchange now employs a dedicated team of 645 employees focused solely on monitoring transactions to detect any fraudulent activity.

Complementing this internal compliance task force are more than a thousand specially trained external contractors to address any illegal transactions and ensure all operations comply with international regulatory standards.

Strategically appoint compliance professionals

To strengthen its compliance infrastructure, Binance has carefully appointed several experienced veterans with strong backgrounds in conventional finance and regulatory bodies:

  • Tigran Gambaryan, Chief of Financial Crimes Compliance, formerly worked at the Internal Revenue Service (IRS).

  • Todd McElduff, Chief Corporate Compliance Officer, previously led global financial crime oversight at PayPal and held senior positions at Morgan Stanley.

  • Noah Perlman, Chief Compliance Officer, joined Binance in January 2023 after working at Morgan Stanley and the US Department of Justice.

The complex regulatory landscape of the cryptocurrency industry requires Binance to have a proactive strategy in enhancing its compliance functions.

A Major Shift and New Compliance Priorities

Co-founder Changpeng Zhao’s voluntary resignation as CEO in November 2023 marked a turning point for Binance. After the company was fined $4.3 billion for violating the Bank Secrecy Act, Zhao stepped down to make way for new leadership. His successor, Richard Teng — a former executive with experience in the delicate policies of Singapore and the UAE — took control of the exchange.

Teng has been candid about his vision for making Binance a benchmark for compliance, emphasizing that such compliance is integral to long-term survival and sustainability. Reflecting on his first year under his guidance recently, Teng conveyed, “Our journey towards becoming a benchmark for compliance underscores our unwavering commitment to building public trust and protecting the security of all our users.”

Implications for Cryptocurrency Traders

While cryptocurrency speculators have welcomed Binance’s increased compliance moves as a sign of safer, more transparent trading conditions, others remain skeptical of the increased oversight. The switch’s commitment to regulatory compliance is expected to protect customers from the risks that may be associated with periods of non-compliance.

With improved measures against suspicious exchanges and strict customer verification, Binance hopes to build trust that customer resources and records will be safely protected.

Final words

Binance’s significant investments in strengthening its compliance departments and recent executive reshuffle underscore the company’s dedication to meeting the expectations of regulators around the world. By proactively strengthening its compliance structure, Binance aims to set an example in the cryptocurrency space, promoting prudent development and protecting users.

As the cryptocurrency space grows, such preventative efforts are key to building trust and ensuring the long-term sustainability of the trading platform. Meanwhile, a variety of sentence structures, from short to more complex, have been used to add complexity and variety, mimicking natural human writing.