By the end of the year, Binance, the world's largest cryptocurrency exchange, anticipates having 645 full-time employees dedicated to compliance, representing a 34% increase from November of the previous year, as it continues to aggressively expand its compliance department. Including contractors, the exchange already boasts over 1,000 employees focused on compliance, according to a recent statement.
This intensified focus on regulatory compliance marks a significant shift for Binance, which last year agreed to pay a substantial $4.3 billion fine to US regulators for violating the Bank Secrecy Act and allowing users to circumvent international sanctions. The settlement also led to the departure of founder and then-CEO Changpeng 'CZ' Zhao, who was succeeded by Richard Teng, a former regulator in Singapore and the UAE. Under Teng's leadership, Binance has been working to become a model of regulatory compliance, with Teng emphasizing the necessity of this approach for the company's long-term sustainability.
While Teng's tenure has accelerated Binance's compliance efforts, the exchange had already begun enhancing its compliance measures prior to Zhao's departure, including the hiring of Tigran Gambaryan, head of financial crime compliance, and Noah Perlman, chief compliance officer. In 2023, Binance increased its compliance spending by 36%.
'The cryptocurrency industry has entered a new phase of maturation, where regulatory compliance is essential for user experience, business success, and responsible growth,' Perlman stated. 'Binance has matured alongside regulators and other industry players, and the continued growth of our compliance team and program reflect this shift towards strong, sustainable growth.' Recent compliance hires at Binance include individuals with extensive experience in traditional finance and government, such as Todd McElduff, the new enterprise compliance director, who previously led the global financial crimes oversight division at PayPal. Binance has also hired two special investigations specialists with nearly 20 years of experience in law enforcement in their respective countries. 'We are actively recruiting top compliance talent to strengthen our industry-leading compliance program and team, in line with the demands of our rapidly evolving sector and growing global crypto adoption,' Perlman said.
'We are proud to lead the industry in protecting users, and the growth of our compliance team ensures we continue to safeguard our global user base of over 240 million.'