Christie claims Binance asserts its strength after investing $213M in compliance.
Binance, the largest cryptocurrency exchange in the world, has made a significant increase in its spending on compliance, allocating $213 million compared to its previous $158 million. This move comes as the exchange faces regulatory challenges and aims to improve its compliance culture.
The increased spending demonstrates Binance’s dedication to compliance, which is a departure from its earlier approach of having a more relaxed stance when it gained prominence in the industry. CEO Richard Teng, who took over from ex-CEO Changpeng ‘CZ’ Zhao in November, praised the exchange’s maturing compliance culture and the talented individuals who have risen to the challenges and opportunities of this rapidly evolving industry.
The increased compliance spending includes personnel costs, such as the appointment of Steve Christie as deputy chief compliance officer. Christie stated that the compliance culture at Binance is now stronger than ever, highlighting the presence of chief compliance officer Noah Perlman, a former global head of financial crimes at Morgan Stanley.
In late November of last year, Binance reached a settlement with the U.S. Department of Justice (DOJ) and agreed to pay fines and penalties totaling over $4 billion. As part of the settlement, the exchange will have a court-appointed monitor to ensure compliance with the terms imposed by the DOJ, Financial Crimes Enforcement Network, and the Office of Foreign Assets Control.
Despite these regulatory challenges, Binance reported significant financial success, attracting over $3.5 billion in new funds in January. The exchange’s total assets now exceed $80 billion, demonstrating resilience and growth despite the headwinds of regulation.
In 2023, Binance welcomed 40 million new users, representing a 30% increase and bringing its total user base to over 170 million. The exchange also saw increased usage of Binance Pay and its peer-to-peer services. In addition, Binance addressed over 60,000 requests from regulatory authorities worldwide and conducted more than 120 compliance training sessions for its personnel.
Overall, Binance’s focus on strengthening compliance signals a shift from its previous lax approach and underscores its commitment to regulatory standards. The company’s financial success and growing user base in the 2023 Report are positive indicators, even in the face of significant legal challenges.