Crypto exchange Binance hiring 1,000 new staff as compliance spending tops US$200 million

Binance Holdings is hiring 1,000 people this year, with many earmarked for compliance roles, as the cryptocurrency exchange’s annual spending to meet regulatory requirements, including US oversight under a plea deal, tops US$200 million.

Chief executive Richard Teng, who is visiting the US to talk to monitors and officials, outlined the employment goals for the world’s largest cryptocurrency trading platform in an interview with Bloomberg News in New York on Wednesday.

“I’ve been a regulator all my life,” Teng said. “Government agencies are important.” He declined to say whether he has met with the Securities and Exchange Commission (SEC) during his trip. The SEC is suing Binance and was not part of the US settlement.

That plea deal with the Department of Justice (DOJ) and other US agencies included a US$4.3 billion penalty for failures that let criminals and terror groups use the exchange. The firm faces years of compliance monitoring by the DOJ and the US Treasury Department’s Financial Crimes Enforcement Network.

Binance chief executive Richard Teng. Photo: Bloomberg

Binance plans to have a 700-strong compliance workforce by the end of this year, up from about 500 at present, according to Teng.

The 55-year-old Teng’s career includes stints as a senior regulator at the Monetary Authority of Singapore, as well as at the city state’s SGX stock exchange. He was also chief executive of the regulator at Abu Dhabi’s international financial centre.

He said Binance fields a growing number of requests from law-enforcement agencies worldwide, numbering 63,000 so far this year, up from 58,000 in 2023.

Spending on compliance has climbed from US$158 million two years ago and is set to increase further, he said. The monitors appointed by the US agencies, Forensic Risk Alliance and Sullivan & Cromwell, have already begun work.

“They’re going to do an assessment,” Teng said. “We’re very early in the journey.” The monitors keep an eye on the company’s financial statements and transaction tracking, he added.

Binance founder and former chief executive Changpeng “CZ” Zhao. Photo: Getty Images

In June, a judge ruled that the bulk of the SEC lawsuit against Binance and its billionaire co-founder Changpeng “CZ” Zhao can proceed. The SEC sued Binance and Zhao in 2023 for mishandling customer funds, misleading investors and regulators, and breaking securities rules.

The defendants contested the claims and asked for the case to be dismissed. Teng said Binance will continue to fight the accusations.

Under Teng, Binance has adjusted the way the firm works with prime brokers, tightened requirements for listing new digital tokens and spun off its venture arm. But Binance has yet to formally designate a global headquarters or release a fully audited set of accounts.

Teng said the business continues to be profitable and that Dubai, Abu Dhabi and another city he declined to specify are on a shortlist of potential locations for the headquarters. A company representative two months ago said Binance’s employee headcount was upwards of 5,000.

The planned hiring spree also encompasses customer service roles, according to Teng. The expansion follows a rebound in cryptocurrency prices and trading volumes from a bear market in 2022 that led to a spate of job losses across the sector.

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