Crypto exchange giant Binance is set to expand its workforce by 1,000 employees in 2024, with a significant focus on bolstering its compliance team. This strategic move comes as the company faces increasing regulatory challenges, particularly in the United States. Binance’s compliance-related expenditures have already exceeded $200 million this year.
Richard Teng, Binance’s CEO, is currently in the U.S. to engage with regulatory authorities, though he has not confirmed whether he has met with the U.S. Securities and Exchange Commission (SEC), which is involved in ongoing legal action against the exchange. Teng emphasized the importance of compliance in an interview with Bloomberg, underscoring his regulatory background as key to his leadership approach at Binance.
Richard Teng’s Regulatory Expertise Drives His Rapid Ascension at Binance
Teng’s extensive regulatory experience has been instrumental in his quick rise within Binance. Before joining Binance, Teng served as Director of Corporate Finance at the Monetary Authority of Singapore and CEO of the Financial Services Regulatory Authority at the Abu Dhabi Global Market. He joined Binance in August 2021 as head of the Singapore operations, though the exchange later closed its Singaporean branch in early 2022. Teng’s responsibilities expanded to overseeing Binance’s operations in the Middle East, North Africa, and Europe, before being appointed as Head for Regional Markets, excluding the U.S.
His regulatory knowledge has been critical as Binance navigates through escalating global regulatory scrutiny.
Compliance Expansion Follows Significant Legal and Financial Settlements
Binance’s recruitment drive comes on the heels of a plea agreement with U.S. authorities in November 2023, in which the exchange and its former CEO, Changpeng Zhao, admitted to multiple charges. These included breaches of the Bank Secrecy Act, failure to register as a money-transmitting business, and violations of international economic sanctions. The settlement resulted in fines exceeding $4.3 billion.
In response to these challenges, Binance plans to expand its compliance team to 700 members by the end of 2024, up from its current 500. Teng noted that the company has seen a nearly 10% increase in law enforcement requests this year, reflecting the growing scrutiny Binance faces.
Teng acknowledged that Binance’s early compliance efforts were inadequate, but he emphasized the company’s commitment to improving its regulatory adherence as it continues to grow.
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