Binance to Expand Compliance Team Amid Rising Regulatory Costs

Binance plans to significantly expand its workforce by adding 1,000 employees this year, focusing on compliance roles.

This move comes as the crypto exchange’s annual regulatory expenses exceed $200 million.

Richard Teng, the CEO of Binance, revealed this hiring initiative during a Bloomberg News interview. The company is increasing its compliance staff from 500 to 700 by the end of 2024 to better manage the growing number of regulatory requests, which have risen to 63,000 this year.

Binance’s compliance costs have surged from $158 million two years ago to over $200 million, covering expenses for US-appointed auditors and monitoring firms.

The company is currently navigating legal challenges, including an ongoing lawsuit from the SEC and recent scrutiny of its former CEO, Changpeng Zhao, who received a prison sentence for anti-money laundering violations.

Since Teng’s appointment, Binance has made several operational adjustments, including changes in its prime brokerage relations and token listing requirements. Despite these efforts, the company has not yet set up a global headquarters or released audited financial reports.