The renowned crypto exchange Binance has significantly boosted its compliance budget, now standing at an impressive $213 million, a notable rise from the previous year’s $158 million. This notable increase was highlighted in a recent article on Fortune and highlight by well-known Chinese journalist Colin Wu.
The increase in compliance spending reflects Binance’s efforts to improve its regulatory standing in the U.S., where it faces multiple investigations and lawsuits. Also, Richard Teng, Binance’s CEO, asserted the exchange’s dedication to fostering a robust compliance culture and disclosed the hiring of skilled professionals to tackle the rapidly evolving industry challenges.
Binance has also brought back Steve Christie, its deputy chief compliance officer, who had left the company in 2023. Christie will oversee Binance’s compliance operations and help the exchange comply with the various regulatory requirements.
Binance Deals With Legal Troubles & Market Growth
Binance’s compliance spending comes amid its legal troubles in the U.S., where it has reached a multi-billion dollar settlement with the authorities and its former CEO, Changpeng Zhao, has pleaded guilty to money laundering charges. As part of the settlement, Binance has agreed to cooperate with a court-appointed monitor, who will ensure that the exchange follows the regulatory directives.
Furthermore, Zhao, who stepped down as Binance’s CEO in 2023, is awaiting sentencing in a federal court in Seattle. He faces a possible 18-month prison term for his role in facilitating illicit transactions on Binance.
Despite the legal woes, Binance has seen a surge in market activity, as it attracted $3.5 billion in new funds in January, a record amount for the exchange. Binance remains the largest cryptocurrency exchange by trading volume, with over $100 billion traded in the past 24 hours.
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