Binance Plans Workforce Expansion

Richard Teng, chief executive of Binance, announced the company intends to increase its workforce by 1,000 employees by the end of 2024, focusing on expanding its compliance team from 500 to 700 members.

Investment in Compliance

The world’s largest crypto exchange expects to spend over $200 million this year on regulatory compliance, particularly in the U.S. following a plea deal with the Justice Department and other agencies.

In 2023, Binance entered a plea deal with the DOJ, where the exchange and former CEO Zhao settled criminal charges for failing to prevent illicit activities on the platform. A U.S. judge approved a plea agreement in February, requiring Binance to pay $4.3 billion in penalties.

Currently, Binance is facing a separate lawsuit from the Securities and Exchange Commission due to allegations of offering financial securities without proper registration.

Two monitors appointed by U.S. agencies, Forensic Risk Alliance and Sullivan & Cromwell, have started assessing the exchange’s financial statements and transaction tracking.

Global Compliance Requests

Teng, who succeeded co-founder Changpeng Zhao as CEO last year, noted an increase in global law enforcement requests, totaling 63,000 in 2024, up from 58,000 the previous year.

Earlier this month, Binance became fully operational in India after settling a $2.25 million penalty with the Financial Intelligence Unit. The exchange also paid $1.75 million in a settlement with Brazil’s SEC, which had banned it from offering derivatives products since 2020.

With a strong background in regulatory compliance, Teng previously worked as a senior regulator at the Monetary Authority of Singapore and served as CEO of the Financial Services Regulatory Authority at Abu Dhabi Global Market.