Changpeng Zhao and Binance's $200 Million Compliance Spending Amid Regulatory Pressure
Regulatory Pressure Mounts on Binance
Regulatory scrutiny looms large over Binance, particularly following its recent plea deal. Chief executive Richard Teng stated that Binance is ramping up its compliance workforce, hiring 1,000 new team members this year alone. This move comes as annual compliance spending has surged to over US$200 million, a reflection of the increasing challenges posed by US regulatory agencies.
Investment in Compliance and Oversight
- The firm’s compliance spending has risen dramatically from US$158 million two years ago.
- US agencies, including the Department of Justice, impose extensive monitoring and oversight measures.
- Binance anticipates a compliance workforce of 700 employees by year-end.
Teng, who has a background in regulation, emphasized that government agencies are critical collaborators in Binance’s path forward. The US settlement imposed a hefty US$4.3 billion penalty, a significant moment in the cryptocurrency exchange's quest for legitimacy.
Facing Legal Challenges
- Binance is currently embroiled in a lawsuit from the SEC, addressing alleged mishandling of customer funds.
- Despite the legal turmoil, Teng insists the firm remains profitable.
- As Binance eyes potential global headquarters, cities like Dubai and Abu Dhabi are on its radar.
This hiring initiative not only reflects the company’s commitment to compliance but also its response to a rebound in cryptocurrency market activity.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.