The Binance compliance team adds 1,000 employees
The world's biggest cryptocurrency exchange, Binance, plans to recruit 1,000 more personnel this year, mostly to improve compliance.
Faced with increased regulatory scrutiny, notably from the US, Binance will concentrate on compliance jobs, hiring at least 20% compliance specialists.
Binance Increases Compliance Spending
These positions are necessary since Binance's yearly compliance cost, currently over $200 million, has skyrocketed from a few million a few years ago.
In a recent interview, the company's CEO, Richard Teng, a regulatory veteran, reaffirmed it. He noted that compliance would rise from 500 to 700 by 2024. Due to its focus on customer service and operational efficiency, this hiring drive is not simply about compliance.
After the Justice Department's $4.3 billion plea agreement, Teng visited the US. Binance requires strong compliance as the transaction brought it under regulation.
Impact Globally
Binance works with law enforcement as well as recruiters. To counter crypto frauds, it works with Macau's Judiciary Police. Binance also reported recovering $73 million in stolen assets this month. It demonstrates user safety and platform integrity.
Crypto market cap $2.1 trillion. Chart: TradingView
Binance is not alone in recruiting as the bitcoin exchange industry changes fast. Tether, the biggest stablecoin issuer, will double its personnel to 200 by mid-2025.
The new personnel would focus on compliance. Crypto exchanges continue to attract worldwide regulatory scrutiny, therefore this marked a shift toward compliance.
Despite these precautions, Binance seems to be in trouble. The exchange and former CEO Changpeng âCZâ Zhao were charged by the SEC for selling unregistered securities.
As the corporation fought these charges, fighting regulators increased complexity to its operations. However, Teng said Binance will fight such charges and show its resilience in situations.
