Binance, one of the world's leading cryptocurrency exchanges, has announced plans to hire 1,000 new employees this year, with 200 positions specifically dedicated to the compliance team. This information was revealed by CEO Richard Teng during an interview with Bloomberg News while he is currently in the United States.
Investment in Regulatory Compliance
Teng stated that Binance is prepared to invest over $200 million this year solely to align its operations with existing regulations across various jurisdictions. This figure marks a significant increase from two years ago, when the company’s compliance expenses were reported to be just $158 million.
Regulatory Challenges in the United States
The exchange faced a substantial regulatory blow in the U.S., where it was ordered to pay a fine of $4.3 billion. This decision followed a court ruling in February, which approved a settlement agreement regarding Binance's admission of guilt. The settlement was a resolution with the Department of Justice (DOJ) and other U.S. agencies, stemming from compliance failures that allowed criminals and terrorist organizations to use the platform for transferring illicit funds.
As part of the agreement, Binance also consented to be subject to long-term monitoring of its operations by the Department of Justice and the Financial Crimes Enforcement Network (FinCEN) of the U.S. Treasury.
Resumption of Operations in India
Last week, Binance announced the full resumption of its operations in India, a move made possible after the company accepted a penalty of $2.25 million imposed by the Indian Financial Intelligence Unit.
Despite these challenges, Teng confirmed that Binance is in strong financial health. When asked if the exchange is considering preparing for an initial public offering (IPO), he stated:
Teng also acknowledged the mistakes made in the past, remarking:
Conclusion
As Binance navigates through regulatory difficulties and expands its workforce with a focus on compliance, the company aims to reinforce its commitment to operating within legal boundaries. This strategic move not only reflects Binance's adaptation to stringent regulatory demands but also its ambition to regain and maintain user trust in a rapidly evolving cryptocurrency landscape.
