Binance goes on a hiring spree, hiring 1,000 more for compliance roles

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Binance plans to hire 1,000 employees this year, with a focus on compliance roles, as the cryptocurrency exchange’s annual regulatory compliance spend exceeds $200 million.

The company’s chief executive, Richard Teng, revealed the hiring targets during an interview with Bloomberg News in New York on Wednesday. The hiring move comes as Binance faces increased regulatory scrutiny and continued oversight from US agencies following a $4.3 billion settlement last year.

Teng, who has experience in financial regulation, emphasized the importance of government agencies and Binance’s commitment to meeting regulatory requirements.

The exchange plans to expand its compliance workforce to 700 by the end of 2024, up from the current 500. This expansion reflects the growing number of law enforcement requests Binance receives, which have reached 63,000 so far this year, compared to 58,000 in 2023.

Teng: “I’ve been a regulator all my life”

The company’s compliance spending has grown significantly, rising from $158 million two years ago to more than $200 million annually. These expenses include costs associated with US-appointed monitors Forensic Risk Alliance and Sullivan & Cromwell, who are evaluating Binance’s financial statements and transaction tracking processes.

Binance continues to face legal challenges, including an ongoing lawsuit from the Securities and Exchange Commission (SEC). In June, a judge ruled that most of the SEC’s case against Binance and its co-founder Changpeng Zhao could proceed. Teng said Binance will continue to contest the allegations.

Earlier this year, Teng called for the release of compliance officer Tigran Gambaryan, detained in Nigeria on charges related to illegal transactions.

In April, former Binance CEO Changpeng Zhao was sentenced to four months in prison after pleading guilty to violating US anti-money laundering laws.

Since taking over as CEO after Zhao’s departure, Teng has implemented several changes at Binance. These include adjusting how the company works with prime brokers, tightening requirements for listing new digital tokens and disbanding its venture arm. However, the company has yet to officially designate a global headquarters or publish fully audited financial statements.

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