Binance Boosts Compliance Staff by 34% Year-Over-Year, Citing Industry’s ‘Rapid Maturation’

With over a thousand staff members dedicated to compliance, Binance – including its contractors – boasts this impressive number, as stated in a press release issued on Friday.

Recently, Binance has significantly strengthened its efforts towards adhering to regulatory guidelines, a shift that comes after it was fined an enormous $4.3 billion by multiple U.S. regulatory bodies last year for infringements on the Bank Secrecy Act (BSA) and for knowingly permitting users to evade international sanctions. As part of this settlement, Binance’s founder and former CEO, Changpeng “CZ” Zhao, was required to relinquish his position as CEO and served a four-month prison sentence for BSA violations.

As a crypto investor, I’ve recently taken notice that Richard Teng, who previously worked as a regulator in Singapore and the United Arab Emirates, has assumed leadership at Binance following Zhao’s departure. Since then, he’s been quite open about his intentions to transform Binance into an exemplar of regulatory compliance. This, he believes, is crucial for ensuring the exchange’s longevity and sustainability in the long run.

Although Teng’s brief leadership at Binance significantly boosted the company’s focus on regulatory compliance, it’s worth noting that Binance had already been working towards becoming more compliant with regulators long before Teng stepped down in November 2023. For instance, Tigran Gambaryan, who heads financial crime compliance at Binance, joined the exchange after leaving the Internal Revenue Service (IRS) in 2021. Additionally, Noah Perlman, the current chief compliance officer, came on board in January 2023. Moreover, Binance increased its spending on compliance by a substantial 36% in 2023.

In terms of our field, we’ve reached a significant stage where regulatory compliance has become crucial not just for user safety and business prosperity, but also for responsible expansion. As Binance has evolved hand-in-hand with regulators and other key players over the years, the expansion of our compliance team and initiatives demonstrates this transformation and the promising future of our industry, marked by steady, sustainable growth,” Perlman explained.

As a crypto investor, I’ve noticed that Binance has been bringing on board professionals with extensive backgrounds in conventional finance and government sectors. This move suggests a commitment to strengthening their compliance measures, which is reassuring for those of us who value transparency and security in our investments.

Todd McElduff, now serving as Binance’s Enterprise Compliance Director, is tasked with managing the exchange’s interactions with international law enforcement bodies. Prior to this role, he held the position of leading the Global Financial Crimes Oversight Division at PayPal. Previously, he served as head of a financial crimes division at Morgan Stanley.

In addition to its existing workforce, Binance has added two investigation experts: Celine Inial from France and Caner Akyurek from Turkey. Both professionals have over two decades of experience in the criminal justice system in their home countries.

Currently, we’re aggressively seeking exceptional compliance professionals to bolster our existing top-tier compliance program. This move aligns with the expanding needs of our sector, which is rapidly evolving, and the increasing worldwide adoption of cryptocurrency. We take pride in setting the bar high for user protection, and the expansion of our compliance team ensures we maintain this standard for our global user base exceeding 240 million.