Binance Holdings is employing 1,000 workers this year, many of whom will be placed in compliance jobs, given that the crypto exchange spends more than $200 million a year to comply with regulatory obligations, including US monitoring under a plea agreement.
In an interview with Bloomberg News in New York on Wednesday, chief executive Richard Teng, who is in the country to meet with officials and monitors, described the companyâs employment objectives for the most significant bitcoin trading platform globally.
Speaking in the interview
In his New York interview, Teng stated that he had spent his entire life acting as a regulator and mentioned the significance of government organizations. Teng was a senior regulator at the Monetary Authority of Singapore before being appointed CEO of Binance. He also held the position of chief executive officer of an international financial centre in Abu Dhabi.
Teng did not, however, say if he met with SEC representatives during this visit. The $4.3 billion settlement the exchange reached with the US Department of Justice and other authorities also fueled the companyâs growth.
Law enforcement requests rise as compliance spending soars
The recruiting intentions follow a plea deal reached in November 2023 with US authorities. As part of the agreement, Binance and its previous CEO, Changpeng Zhao, acknowledged many allegations. This accord contained hefty fines totalling more than $4.3 billion. The penalty was due to the Bank Secrecy Act, international economic powers legislation, and failure to register as a money-transmitting firm.
Bloomberg claims that Binance plans to grow its compliance staff from its present size of approximately 500 to 700 by the end of the year. Teng reported that the firm is receiving more requests from law enforcement worldwide than the previous year, a spike of about 10%.
He continued by saying that the exchangeâs compliance costs have increased from $158 million a few years ago and are predicted to keep rising. Teng has already admitted to making errors in Binanceâs early stages, emphasizing how inadequate its compliance efforts were then.
Under Teng, Binance has separated its venture arm, tightened standards for launching new digital assets, and changed how the company interacts with prime brokers. However, Binance must still disclose a fully audited set of financial statements or legally designate a worldwide headquarters.
Teng stated that the company is still profitable and its headquarters might be in Dubai, Abu Dhabi, or another place he would not name. A corporate official stated two months ago that Binance employed more than 5,000 people.
The Binance chief executive claims that the upcoming recruiting spree will include customer service positions. The growth comes after cryptocurrenciesâ values and trading volumes recovered from a bear market in 2022, which resulted in a wave of employment losses.
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