In a striking shift from its freewheeling early days, Binance, the world’s biggest cryptocurrency exchange, is now making regulatory compliance a top priority. The company recently announced it expects to have 645 full-time compliance staff by year’s end—a 34% increase from last November. It’s a sign of the times in the rapidly evolving crypto space, where players are realizing that playing by the rules is key to long-term survival and success.
Binance’s Compliance Overhaul
Binance’s heightened focus on regulatory adherence marks a major turning point for the exchange, which just a year ago agreed to pay a whopping $4.3 billion fine to US regulators for violating the Bank Secrecy Act and knowingly allowing users to sidestep international sanctions. As part of the settlement, founder and then-CEO Changpeng “CZ” Zhao stepped down and served a 4-month prison sentence for BSA violations.
Leading Binance’s compliance revamp is new CEO Richard Teng, a former regulator in Singapore and the UAE with a vision of transforming the exchange into a model of regulatory compliance—something he sees as essential for the company’s long-term sustainability. Teng’s short tenure has certainly turbocharged Binance’s compliance efforts, but the shift began even before Zhao’s November 2023 resignation.
Key Compliance Hires
To bolster its compliance capabilities, Binance has been strategically recruiting top talent from traditional finance and government. Some notable recent hires include:
- Todd McElduff (Director of Enterprise Compliance) – Former head of Morgan Stanley’s global financial crimes oversight division
- Tigran Gambaryan (Head of Financial Crime Compliance) – Joined from the IRS in 2021
- Noah Perlman (Chief Compliance Officer) – Started in January 2023
- Céline Inial (Special Investigations Expert, France) – Nearly 20 years of law enforcement experience
- Caner Akyürek (Special Investigations Expert, Turkey) – Nearly 20 years of law enforcement experience
“Our industry has entered a paradigm shift and new phase of maturation, where regulatory compliance is an essential standard for user experience and protection, business success and responsible growth.”
– Noah Perlman, Binance Chief Compliance Officer
Investing in the Future
Binance’s compliance investments have been substantial. In 2023 alone, the exchange increased compliance spending by 36%. But leadership sees it as a necessary foundation for sustainable growth as global crypto adoption accelerates.
“We are actively hiring the best compliance talent to strengthen our already industry-leading compliance program and team to meet the demands of our rapidly maturing sector while global Crypto adoption also grows rapidly.”
– Noah Perlman
With over 240 million global users, Binance knows that robust compliance is key to protecting its massive user base and ensuring it can continue operating in an increasingly regulated industry. As more mainstream consumers and institutional investors enter the crypto markets, exchanges will face mounting pressure to align with regulatory standards.
A New Era for Crypto
Binance’s proactive compliance push reflects a broader sea change across the crypto industry. The days of an unregulated “Wild West” are fading fast as cryptocurrencies gain wider acceptance and governments step up oversight. Major economies worldwide are implementing crypto regulatory frameworks, and international bodies like the Financial Action Task Force (FATF) are issuing guidance for mitigating crypto’s money laundering and terrorist financing risks.
In this new landscape, exchanges that fail to prioritize compliance do so at their own peril. Regulators have already begun cracking down on non-compliant platforms, with some facing stiff penalties or even shutdown. Those that adapt and embrace robust compliance stand the best chance of thriving long-term.
The Road Ahead
While Binance’s compliance drive is noteworthy, it’s just the beginning of a much longer journey—both for the exchange and the broader industry. Building a truly comprehensive compliance program takes time, resources and relentless commitment. But it’s an investment that pays dividends in increased trust, stability and growth potential.
As the largest exchange, Binance has an opportunity to lead by example and set a high bar for industry compliance standards. How it continues to navigate the evolving regulatory environment—and whether other major players follow its lead—will have significant implications for crypto’s future.
One thing is certain: in the coming years, regulatory compliance will be a key differentiator separating crypto’s enduring successes from its flash-in-the-pan failures. Exchanges that adapt will be well-positioned to ride crypto’s next growth wave. Those that resist risk being left behind in an industry that waits for no one.
