Binance is Set to Invest More Than Ripple in Compliance to Overcome SEC Lawsuit Expenses
Binance, the world’s largest cryptocurrency exchange, is ramping up its compliance efforts in the wake of recent global regulatory conflicts. The company plans to hire 1,000 employees this year, with a significant focus on compliance roles. It intends to allocate substantial resources to meet regulatory requirements, with spending exceeding even Ripple Labs’ costs in their battle against the SEC lawsuit.
Binance CEO Interview on Bloomberg
Binance CEO Richard Teng emphasized the importance of regulatory compliance in a recent Bloomberg interview, acknowledging the significant impact of government agencies. The exchange is facing heightened compliance monitoring from the US Department of Justice and the Financial Crimes Enforcement Network, resulting in rising costs. Notably, the company reached a plea deal with US agencies, agreeing to a $4.3 billion penalty related to money laundering violations and compliance issues.
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Compliance spending has surpassed $200 million, compared to $158 million two years ago, and is expected to increase further with the appointment of monitors by US agencies, including Forensic Risk Alliance and Sullivan & Cromwell.
Heightened Focus on Compliance
The heightened focus on compliance is indicative of the broader challenges facing crypto companies amid regulatory ambiguity. Binance’s proactive approach aligns with the industry trend, as evidenced by Tether’s plans to expand its workforce and the ongoing legal battles, such as the Ripple vs. SEC lawsuit.
The industry’s commitment to compliance is underscored by the substantial financial investments made to navigate regulatory complexities. Despite the challenges, the crypto industry remains resilient, with companies like Binance and Tether signalling their bullish sentiment through strategic hiring and continued legal defense efforts.
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Tolu Zach is a multifaceted professional with expertise in both crypto content creation and medical laboratory technology. With a unique blend of analytical skills and industry knowledge, Tolu navigates the complexities of cryptocurrency while maintaining a pivotal role in healthcare. Trusted for insightful analysis and accurate diagnostics, Tolu excels in diverse fields.
