Key Takeaways
- Binance plans to hire 1,000 new employees in 2024, focusing on compliance teams.
- The company’s regulatory obligations, including those related to the plea agreement, have increased compliance expenses.
- Despite efforts to improve compliance, Binance faces legal issues, such as the SEC lawsuit.
Binance Holdings plans to boost its employee count by 1,000 in 2024, focusing on strengthening its compliance teams. The expansion will see compliance staff grow from 500 to 700, aligning with the company’s increasing regulatory costs, which have exceeded $261 million.
The recruitment drive comes as Binance faces heightened regulatory scrutiny, partly due to obligations stemming from a US plea agreement.
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“I’ve been a regulator all my life. Government agencies are important,” Teng said , emphasizing the significance of compliance in the crypto sector.
He also noted that the company has already handled 63,000 requests from law enforcement agencies this year, up from 58,000 in 2023.
The expansion of the compliance team is a key part of Binance’s efforts to address its regulatory challenges, as the firm is now subject to several years of compliance monitoring overseen by the DOJ and the US Treasury’s Financial Crimes Enforcement Network.
As a result, the company’s compliance expenses have risen from $158 million two years ago and are expected to continue increasing.
US-appointed monitors from Forensic Risk Alliance and Sullivan & Cromwell have already started reviewing Binance’s financial statements and transaction tracking systems. “We’re very early in the journey,” Teng said, indicating the preliminary stage of their oversight.
By hiring an additional 1,000 employees in 2024, Binance aims to demonstrate its commitment to compliance and regulatory cooperation.
Despite the ongoing legal challenges, the company is confident in its ability to navigate the complex regulatory landscape and emerge stronger.
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Under Richard Teng’s leadership, Binance is making progress despite ongoing challenges. Teng has overseen significant operational changes, including tightening listing criteria for new digital tokens and the separation of the venture capital arm.
As the company continues to evolve, Teng is optimistic about its future. He highlighted Binance’s profitability and revealed that Dubai, Abu Dhabi, and other undisclosed cities are being considered as potential locations for the company’s headquarters.
The upcoming hiring drive will include positions in customer service, which is a strategic move to support the company’s growth. This expansion is a direct response to the recovery in cryptocurrency prices and trading volumes following a challenging bear market in 2022.
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