Binance, the world’s largest crypto trading platform, has announced that it intends to expand its workforce by 1,000 new employees by the end of 2024, with at least 20% of the new staff focused on compliance.
Binance’s hiring spree could mean that the exchange, which has unique insights into the crypto market, is optimistic. This indicates that, while a rally is not guaranteed, major industry players are preparing for it.
Binance To Onboard New Hires
Speaking to Bloomberg on Wednesday, Binance CEO Richard Teng, a former regulator, outlined the company’s plans to spend over $200 million this year on regulatory compliance alone. Teng indicated that Binance will be increasing its compliance workforce to 700 by the end of this year, up from the current 500.
The Binance boss is currently visiting the United States, where he is holding meetings with regulators following a plea agreement with the Justice Department that resulted in the exchange paying a $4.3 billion fine and former CEO Changpeng Zhao serving a four-month prison sentence in California.
In an Aug. 21 X post, Teng asserted that “the amount of resources, talent, and effort that Binance invests in proactively creating a more secure ecosystem is unparalleled.”
The amount of resources, talent, and effort that #Binance invests in proactively creating a more secure ecosystem is unparalleled. If you ask me, "Why Binance?" This is definitely one of the reasons. We always put the well-being of users and the industry first.
— Richard Teng (@_RichardTeng) August 21, 2024
Global Compliance
Teng further revealed that Binance has received a growing number of requests from law enforcement agencies worldwide — 63,000 so far in 2024, compared to 58,000 in 2023.
As ZyCrypto had covered earlier, Binance restarted operations in India after paying a $2.2 million penalty to India’s Financial Intelligence Unit. The company also agreed to settle with Brazil’s Securities and Exchange Commission for $1.75 million following a 2020 ban.
It’s worth mentioning that Binance is not the only key player on a compliance hiring spree. Prominent stablecoin issuer Tether also announced earlier this month that it will double its workforce to 200 by mid-next year, with a focus on its regulatory compliance.
Bull Market Impending?
With Binance’s decision to drastically expand its headcount, it’s safe to assume that a fully-fledged real bull market could be brewing. This belief stems from the fact that crypto companies have historically slashed their workforce ahead of a prolonged bear market.
On the contrary, when the world’s largest crypto exchange goes on a hiring spree, it might signal the company’s bullish outlook for the near future.