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- Binance’s compliance budget is now $213 million, up from $158 million last year.
- The surge mirrors efforts to fortify its regulatory standing amid mounting scrutiny.
- Binance is bringing back Steve Christie, its deputy chief compliance officer.
Leading crypto exchange Binance has increased its compliance budget, allocating a staggering $213 million, up from $158 million in the previous year. This development was captured in a recent publication on Fortune, as spotlighted by renowned Chinese reporter Colin Wu.
Binance says it’s increased year-over-year spending on compliance from $158 million to $213 million, purchasing a raft of new software systems to block and report suspicious transactions. The increased outlay also reflects personnel costs, including Binance’s decision to bring…— Wu Blockchain (@WuBlockchain) February 3, 2024
Notably, the surge in Binance’s compliance budget from $158 million to $213 million reflects an approximately 35% increase in spending. The surge mirrors the exchange’s concerted efforts to fortify its regulatory standing amid mounting scrutiny from the U.S.
CEO Richard Teng emphasized the company’s commitment to fostering a robust compliance culture, attributing the strides to the caliber of talent available at Binance. Teng underscored the importance of meeting new challenges head-on in the fast-paced sector.
Besides, the report also noted that Binance was bringing back Steve Christie, its deputy chief compliance officer. Essentially, these moves underscore Binance’s commitment to fortifying its compliance framework amid mounting pressures.
Significantly, recent developments have compelled the exchange to overhaul its practices and embrace greater accountability. This includes a multi-billion dollar settlement with U.S. authorities and its former CEO’s guilty plea to money laundering charges.
As part of the settlement agreement, Binance must comply with stringent oversight measures. It includes the appointment of a court-appointed monitor tasked with upholding regulatory directives. The impending monitor, yet to be formally appointed, will ensure Binance’s adherence to stipulated terms set forth by regulatory bodies.
Meanwhile, Changpeng Zhao, Binance’s former CEO, awaits sentencing in a federal court in Seattle. Reports have hinted at a potential 18-month prison term. Despite the legal woes, Binance has witnessed a resurgence in market activity. For instance, January witnessed a record influx of $3.5 billion in new funds.
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