Binance, the world's largest cryptocurrency exchange, plans to hire 1,000 new employees this year, with a significant focus on bolstering its compliance team, according to CEO Richard Teng.
Binance Expands Workforce, Boosts Compliance Efforts
During an interview with Bloomberg News, Teng revealed that the company aims to increase its compliance workforce to 700 by the end of 2024, up from the current 500. This expansion comes as Binance's annual compliance-related expenditures have surpassed $200 million.
The hiring initiative follows a recent $4.3 billion settlement with US authorities, which includes ongoing compliance monitoring. Teng, who is currently visiting the United States to meet with officials, declined to comment on potential discussions with the Securities and Exchange Commission (SEC).
“They’re going to do an assessment,” Teng commented on two monitors appointed by te US agencies. “We’re very early in the journey.”
Binance has seen a sharp increase in law enforcement requests, receiving 63,000 inquiries so far this year compared to 58,000 in 2023. The company has also partnered with local authorities in various jurisdictions to combat crypto-related crimes.
Despite regulatory challenges, Teng affirmed that Binance remains profitable. The CEO, who took the helm after founder Changpeng Zhao stepped down, has implemented several changes, including adjusting prime broker relationships and tightening token listing requirements.
Although Teng had already been working for Binance before taking on his new role, he was previously associated with government regulators. Among other positions, he spent 13 years as the Director of Corporate Finance at the Singaporean financial market regulator.
Previously, several other major cryptocurrency firms also employed former top regulators who had worked for institutions like NYDFS, the Secretary of Commerce, SEC, US Treasury, or CFTC.
The company's growth plans currently extend beyond compliance, with additional hires expected in customer service and other departments.
The amount of resources, talent, and effort that #Binance invests in proactively creating a more secure ecosystem is unparalleled. ????If you ask me, "Why Binance?" This is definitely one of the reasons. We always put the well-being of users and the industry first.
— Richard Teng (@_RichardTeng) August 21, 2024
Binance continued hiring not only when the cryptocurrency industry showed signs of recovery. During the "crypto winter," when the market was down and competitors like Coinbase were cutting staff, Binance actively expanded its team in 2023.
Compliance Roles Increasingly Valued
A survey conducted in April this year, which Finance Magnates exclusively presented to its readers, highlighted the increasing importance of compliance roles in the financial sector.
According to the FinTop Consulting 2024 salary report, the earnings of executives in the FX/CFD market in Cyprus have decreased compared to the previous year, while there has been a significant increase for those holding the position of Head of Compliance.
“New regulatory changes will increase the demand for compliance professionals. This can include professionals with expertise in areas such as regulatory compliance, anti-money laundering, know your customer requirements, and data protection laws,” Reece Pawsey, Director at FinTop Consulting, commented. “As the demand for compliance professionals grows, salaries for these roles may increase due to higher demand and competition for qualified candidates.”
In Cyprus, the salary bracket for Executive Directors decreased to between €60,000 and €140,000, a drop from the prior year's range of €100,000 to €150,000. Concurrently, Heads of Compliance saw a significant increase in their compensation. The current salaries for Heads of Compliance based in Cyprus range from €57,000 to €90,000, marking a notable rise from the previous €65,000 to €75,000.
This article was written by Damian Chmiel at www.financemagnates.com.
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