As the world’s largest crypto exchange, Binance has been making significant efforts to improve its regulatory compliance. In a recent press statement, the company announced that it expects to have 645 full-time compliance employees on staff by the end of the year, marking a 34% increase from last November.
Compliance Hiring Spree: A Response to Regulatory Pressures
Including contractors, Binance already has over 1,000 employees focused on compliance. This substantial investment in compliance personnel is a testament to the company’s commitment to regulatory adherence. The exchange’s intense focus on compliance is relatively new, having come under scrutiny just one year ago when it agreed to pay a massive $4.3 billion fine to various U.S. regulators for violating the Bank Secrecy Act (BSA) and knowingly allowing users to skirt international sanctions.
From Settlement to Regulatory Compliance
As part of Binance’s settlement, founder and then-CEO Changpeng ‘CZ’ Zhao agreed to step down as CEO and was sentenced to four months in prison for violating the BSA. Richard Teng, a former regulator in Singapore and the United Arab Emirates, took the helm at Binance after Zhao’s departure. Under Teng’s leadership, the company has accelerated its compliance efforts, with a renewed focus on becoming a model of regulatory compliance.
A History of Compliance Efforts
While Teng’s short tenure as CEO has certainly contributed to the exchange’s compliance momentum, Binance began making an effort to be more compliant with regulators well before Zhao stepped down in November 2023. In 2021, Tigran Gambaryan, Binance’s head of financial crime compliance, left the Internal Revenue Service (IRS) to join the exchange. Noah Perlman, Binance’s chief compliance officer, started in January 2023, bringing a wealth of experience from his previous roles.
Compliance Spend Up 36%
In 2023, Binance increased its compliance spend by 36%, demonstrating the company’s commitment to regulatory adherence. "Our industry has entered a paradigm shift and new phase of maturation where regulatory compliance is an essential standard to user experience and protection, business success, and responsible growth," Perlman said. "Binance has matured alongside regulators and other players throughout the years, and the continued growth of our compliance team and program are a testament to that and this shift in our industry which is set for strong sustainable growth."
Compliance Hiring: A Focus on Traditional Finance and Government Experience
Some of Binance’s recent compliance hires include individuals with long careers in traditional finance and government. Todd McElduff, Binance’s new enterprise compliance director, previously led the global financial crimes oversight division at PayPal and was head of a financial crime division at Morgan Stanley.
Binance has also hired two special investigations specialists, Céline Inial for France and Caner Akyürek for Turkey, who both have nearly 20 years of experience in law enforcement in their respective countries. "We are actively hiring for top compliance talent to strengthen our already industry-leading compliance program and team to match the demands of our rapidly maturing sector while global crypto adoption also grows rapidly," Perlman said.
Protecting Users: A Compliance-Focused Approach
"We are proud of leading the industry’s standards in protecting users and the growth of our compliance team ensures we continue to protect our global user base of over 240 million," Perlman added. Binance’s commitment to regulatory compliance is a significant step towards ensuring the company’s long-term sustainability.
Conclusion
Binance’s rapid expansion of its compliance department reflects the company’s willingness to adapt to changing regulatory landscapes. With a focus on traditional finance and government experience, the exchange is poised to become a model for regulatory compliance in the crypto industry. As global crypto adoption continues to grow, Binance’s commitment to protecting users through robust compliance measures will play a crucial role in shaping the future of the sector.
Key Statistics:
- 645 full-time compliance employees expected by the end of the year (34% increase from last November)
- Over 1,000 employees focused on compliance, including contractors
- $4.3 billion fine paid to various U.S. regulators for violating the BSA and knowingly allowing users to skirt international sanctions
- Richard Teng’s short tenure as CEO has accelerated Binance’s compliance efforts
Industry Insights:
- Regulatory compliance is becoming an essential standard in the crypto industry
- Binance is leading the way in regulatory compliance, with a commitment to protecting users through robust measures
- The growth of the compliance team and program at Binance ensures long-term sustainability
