 "Binance")
Binance plans to have a 700-strong compliance workforce by the end of 2024. | Source: Bloomberg
Binance Holdings Ltd. is hiring 1,000 people this year with many earmarked for compliance roles as the crypto exchange’s annual spending to meet regulatory requirements, including US oversight under a plea deal, tops $200 million.
“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 during his trip. The SEC is suing Binance and wasn’t part of the US settlement.
Compliance Workforce
Binance plans to have a 700-strong compliance workforce by the end of 2024, up from about 500 currently, said 55-year-old Teng. His 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 officer of the regulator at Abu Dhabi’s international financial center.
Teng 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 $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 anti-money-laundering and transaction-tracking efforts, he added.
Teng took over as Binance’s chief executive after Zhao stepped down as part of the US plea deal. Zhao was subsequently sentenced to a four-month jail term.
Teng’s Changes
Under Teng, Binance has adjusted the way it works with prime brokers, tightened requirements for listing new digital tokens and spun off its venture arm. But the company 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 short-list of potential locations for the headquarters. A company spokesperson two months ago said Binance’s headcount was upwards of 5,000 staff.
First Published: Aug 22 2024 | 9:33 PM IST
