Binance, the world’s largest cryptocurrency exchange, has announced its plans to increase its compliance staff by 34% by the end of the year. This means that the exchange will have 645 full-time compliance employees on staff, in addition to over 1,000 employees including contractors who are focused on compliance.
The focus on regulatory compliance is a relatively new development for Binance, which just a year ago faced a $4.3 billion fine for violating the Bank Secrecy Act and allowing users to skirt international sanctions. Following this incident, founder and then-CEO Changpeng “CZ” Zhao stepped down and Richard Teng took over as CEO.
Since Teng’s tenure began, Binance has been vocal about its commitment to regulatory compliance. This shift is seen as essential for the long-term sustainability of the company. The exchange has been making efforts to enhance compliance with regulators even before Zhao’s departure in November 2023.
To support its compliance efforts, Binance has made significant hires from traditional finance and government sectors. Todd McElduff, the new enterprise compliance director, previously led the global financial crimes oversight division at PayPal. Additionally, Binance has hired two special investigations specialists with extensive experience in law enforcement.
Binance’s Chief Compliance Officer, Noah Perlman, emphasized the importance of regulatory compliance in the cryptocurrency industry. He highlighted that the continued growth of the compliance team is a testament to the company’s commitment to protecting its user base of over 240 million.
Moving forward, Binance is actively seeking top compliance talent to further strengthen its compliance program. The exchange aims to lead the industry in setting standards for user protection and compliance as crypto adoption continues to grow globally.
It is evident that Binance’s increased focus on compliance is a response to the evolving regulatory landscape in the cryptocurrency industry. By investing in its compliance team and program, Binance is positioning itself for sustainable growth and success in the long term.