Binance Holdings is set to expand its workforce by 1,000 employees in 2024, with a key emphasis on bolstering compliance teams, according to Bloomberg.
The company plans to increase its compliance staff from 500 to 700 as part of this growth.
This hiring push comes amid Binance‘s rising regulatory expenditures, which have now surpassed US$261 million, including oversight due to a U.S. plea agreement.
In an interview with Bloomberg News on 21 August, Binance’s CEO Richard Teng, who previously held significant regulatory roles, emphasized the growing importance of compliance in the crypto industry.
Binance has already handled 63,000 law enforcement requests in 2024, up from 58,000 in the previous year, underscoring the increasing regulatory scrutiny.
The company’s spending on compliance, which stood at US$158 million two years ago, is expected to continue climbing.
To ensure compliance, U.S.-appointed monitors, including Forensic Risk Alliance and Sullivan & Cromwell, have begun reviewing Binance’s financial statements and transaction tracking systems.
Despite these efforts, Binance still faces significant legal challenges, including a lawsuit from the U.S. Securities and Exchange Commission (SEC) over alleged mishandling of customer funds and other regulatory violations.
Teng, who took over as CEO in 2023 following a plea deal that led to the departure of Binance’s co-founder Zhao Changpeng, is navigating the company through these challenging times.
Zhao, also known as CZ, was sentenced to four months in prison as part of this agreement, which addressed anti-money laundering violations.
Under Teng’s leadership, Binance has restructured its operations, implementing stricter requirements for listing new digital tokens and spinning off its venture arm.
However, the company has yet to establish a global headquarters or release fully audited financial statements.
Despite ongoing challenges, Teng maintains that Binance remains profitable.
The company is currently considering potential locations for its global headquarters, with Dubai and Abu Dhabi among the options.
Featured image credit: Edited from Freepik
