Binance, a cryptocurrency exchange, aims to double its enforcement staff by the end of the year and said it will “humbly welcome more capable talents” as it deals with a slew of regulatory inquiries from across the world.
In the midst of a global crackdown on cryptocurrencies this year, authorities in the United Kingdom, Japan, Germany, and Thailand have expressed worry about the exchange, which is one of the largest. Binance provides spot cryptocurrency trading, derivatives, tokenized stock trading, and its own cryptocurrency, BinanceCoin. It also has an opacity to its structure and has developed into a behemoth as the demand for bitcoin trading has skyrocketed.
In a statement posted on the firm website, chief executive Changpeng Zhao wrote, “Binance has grown very quickly, and we haven’t always got everything exactly right.” According to CryptoCompare statistics, the company’s most wholehearted reaction to the rush of regulatory interest has occurred while monthly trade volumes on the exchange have skyrocketed to more than $660 billion in June.
Regulators all around the globe are concerned about criminals exploiting cryptocurrencies as a conduit for money laundering and investors falling prey to scams in the booming industry. Binance was prohibited from doing regulated operations in the United Kingdom by the Financial Conduct Authority last month. Binance has been accused of operating unlawfully in Japan, and Germany’s authority has warned it might face sanctions if it continues to provide tokens linked to equities. Zhao made no mention of any such investigation, but he did say that the largely uncontrolled business was “maturing.”
“The adoption and development of crypto has many parallels with that of the car,” Zhao stated.
“When the car was first invented, there weren’t any traffic laws, traffic lights or even safety belts. Laws and guidelines were developed along the way,” he remarked. “Crypto is similar.” Zhao stated. Binance’s international compliance team and the advisory board had expanded “by 500% since last year” and that the company expected to double in size by the end of 2021, without specifying the number of people who would be hired. Binance is also being investigated by the US Justice Department and the Internal Revenue Service (IRS).
Zhao made no mention of it but did say that Binance interacts with law enforcement organizations such as the IRS and that the company has already “completed assisting 5,600 investigation requests” internationally this year, more than double the number from 2020. “Our vision is to increase freedom and inclusion for a better human society,” Zhao wrote. “We humbly welcome more capable talents and experienced advisers to join us to build better.”