As a seasoned crypto investor with a penchant for keeping tabs on the industry’s movers and shakers, I find myself intrigued by Binance’s recent commitment to beefing up its compliance department. Richard Teng, the new CEO, has made it clear that they aim to add 1,000 employees, with a substantial chunk going towards ensuring their operations are not only robust but also squeaky clean.
By the end of 2024, it’s said that Binance plans to expand its team significantly, hiring at least 1,000 additional staff members. Approximately one fifth of these new hires will be assigned to roles focused on compliance.
In a recent interview with Bloomberg on August 22, Richard Teng, who assumed the role of Binance’s CEO towards the end of 2023, disclosed their plans for growth. One notable aspect is that they intend to increase their staff count by approximately 1,000 employees. Among these new hires, an additional 200 will be dedicated to the compliance department.
As a researcher, I’m currently delving into the structure and expenses of Binance, a leading player in the cryptocurrency exchange market. Interestingly, their compliance workforce comprises approximately 500 dedicated individuals. Furthermore, it’s been reported that the company has invested over $200 million to ensure they meet stringent regulatory standards, particularly within the United States. This significant financial commitment underscores Binance’s dedication to adhering to and navigating the complex regulatory landscape in this rapidly evolving sector.
In the year 2024, Binance received over 63,000 inquiries from law enforcement agencies, surpassing the 58,000 they handled during the entirety of 2023, as reported by Teng.
Binance boosts compliance efforts under U.S. supervision
Due to a recent agreement with the U.S. Department of Justice, the Financial Crimes Enforcement Network, and various other American regulatory bodies, Binance has been driven to intensify its compliance efforts following a fine of approximately $4.3 billion.
The authorities had accused Binance of violating the Bank Secrecy Act, operating as an unlicensed money transmitting business, and failing to maintain an effective anti-money laundering program.
Under the terms of the agreement, the Department of Justice (DoJ) and Financial Crimes Enforcement Network (FinCEN) will oversee Binance’s compliance measures for a period of five years. Furthermore, Changpeng Zhao, the founder of Binance, stepped down from his position as CEO.
Monitoring bodies have selected representatives to examine Binance’s financial records and trail transactions. Yet, Teng acknowledged that Binance’s path towards ensuring cryptocurrency compliance is just beginning.
Although Binance is striving to adhere to regulations, it’s still under investigation by the U.S Securities and Exchange Commission for suspected violations of securities laws, deceiving investors, and mismanaging customer assets. Nevertheless, Binance has declared its intention to contest these allegations.
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2024-08-22 11:42