As a seasoned researcher with a keen interest in the ever-evolving digital economy, I find myself intrigued by Binance’s strategic expansion in compliance. With Richard Teng at the helm, a man who has spent his entire career as a regulator, it seems that Binance is taking regulatory pressures seriously and making strides towards becoming a more compliant platform.
In simple terms, the world’s leading cryptocurrency exchange, Binance, plans to recruit around 1,000 new team members this year. Many of these positions will be dedicated to compliance matters, as Binance intensifies its efforts to meet growing regulatory requirements, particularly in the United States where annual compliance costs could reach $200 million. This information was shared by Binance’s CEO, Richard Teng, during an interview with Bloomberg News while he was in New York.
Teng, with his experience in being a regulator for many years, stressed the need for close cooperation with governmental institutions. In a discussion with Bloomberg, Teng said, “I’ve been a regulator all my life.” He also pointed out that Binance considers regulation as a crucial factor. However, he refrained from telling if he had a meeting with the U.S. Securities and Exchange Commission (SEC) on his recent visit. Currently, the SEC is suing Binance, but it was not part of the settlement agreement that the company recently signed with other U. S. agencies.
Binance to Expand Compliance Team After $4.3B U.S. Penalty
The $4.3 billion penalty, agreed upon in a plea bargain with the U.S. Department of Justice and other authorities, is part of this settlement reached due to Binance’s platform being implicated in facilitating illegal activities by criminals and terrorists. As a result, Binance will undergo ongoing compliance assessments by the DOJ and the Financial Crimes Enforcement Network (FinCEN) of the U.S. Treasury Department for an extended period.
In an effort to bolster its compliance efforts, Binance plans to expand its compliance team from 500 to 700 members this year. As Teng stated, Binance has already received over 63,000 inquiries from law enforcement agencies worldwide in the year 2024, marking a rise of 1,000 requests compared to the previous year’s 58,000 inquiries.
The same effect has resulted in a rise in expenditure related to adherence, as stated by Teng, who noted that it has risen from $158 million two years ago. Currently, the monitors assigned by the U.S., such as Forensic Risk Alliance and Sullivan & Cromwell, are tasked with scrutinizing and evaluating the financial documents and transactions of Binance.
In conclusion, Binance is still grappling with legal problems such as the ongoing dispute with the SEC. However, despite these hurdles, the company stays dedicated to creating a safe platform and addressing regulatory matters.
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2024-08-22 16:22