The world’s largest cryptocurrency exchange, Binance, has announced a rather ambitious plan. It plans to hire 1,000 new employees this year, Many of these initiatives will be implemented through efforts to enhance compliance efforts.
In the face of increasing regulatory scrutiny, particularly from the United States, Binance The company will focus on compliance-related roles, and aims to have at least 20% of these new positions filled by professionals with a specific focus on compliance.
Binance Increases Spending on Compliance
The urgency to make these appointments stems from Binance’s annual report. Compliance spending, The size of these investments now exceeds $200 million, a huge increase from just a few million a few years ago – a huge investment in doing things the right way.
This was confirmed by the company’s CEO, Richard Teng, a person with a long history of regulatory experience, in a recent interview. He added that the compliance workforce will increase from 500 to 700 by the end of 2024. This is not just about compliance, as this recruitment campaign includes customer service; it is a comprehensive strategy aimed at enhancing operational efficiency.
Binance is hiring 1,000 people this year with many of them dedicated to compliance roles as the crypto exchange’s annual spending to meet regulatory requirements exceeds $200 million https://t.co/71PdU1QvLf
— Bloomberg (@business) August 22, 2024
Ting’s visit to the US comes after a plea deal with the Department of Justice that saw Binance pay a $4.3 billion fine. The deal put Binance on the regulatory radar and in need of a robust compliance structure.
Impact on a global scale
Binance’s efforts are not just focused on recruitment; they also extend to active cooperation with law enforcement agencies. This can be demonstrated by its collaboration with the Macau Judicial Police in combating cryptocurrency scams. In this regard, Binance also announced that it has recovered over $73 million in funds that were stolen earlier this month. This shows its commitment to user protection and platform integrity.
The global cryptocurrency trading landscape is changing so rapidly that Binance isn’t the only one on a hiring spree. Tether, the world’s largest stablecoin issuer, has announced that it will double its staff to 200 by mid-2025.
The new hires will primarily work on compliance. This marks a shift in the sector towards regulatory compliance, as cryptocurrency exchanges continue to attract a lot of attention from global authorities.
Current and Ongoing Legal Issues
Despite these somewhat proactive measures, Binance seems unable to protect itself from the grip of the law. The Securities and Exchange Commission has filed a lawsuit against the exchange and former CEO Changpeng “CZ” Zhao for allegedly selling unregistered securities.
While the company has denied the allegations, the ongoing battle with regulators has added an additional layer of complexity to its operations. Ting said Binance would fight such allegations, but highlighted the company’s resilience when faced with crises.
Featured image from FinanceFeeds, chart from TradingView
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