The world's largest cryptocurrency exchange, Binance, plans to hire 1,000 people this year, according to current CEO Richard Teng. Interestingly, many of whom will be dedicated to regulatory compliance.
Teng spoke about the company's plans in an interview with Bloomberg, noting the importance of working with government agencies. The legs of this rhetoric stretch from Binance entering into a plea agreement that resulted in it having to pay a $4.3 billion fine and former CEO Changpeng Zhao going to jail.
Gamza KhanzadaevNow the black-and-yellow crypto giant is receiving even more inquiries from law enforcement. The thing is, as a result of that deal, the exchange agreed to external surveillance of its anti-money laundering and transaction tracking activities. Hence, for the most part, the need for additional labor.
Teng noted that Binance will continue to fight allegations of mismanagement of customer funds and securities violations brought by the SEC. It is important to consider that the exchange's annual costs to comply with regulations, including U.S. oversight, reach more than $200 million.
Bull run confirmed?
Against this background, one can assume that a real bull market may occur in the coming months. This assumption is due to the fact that cryptocurrency companies traditionally reduce their staff and number of employees during or ahead of prolonged down cycles.
On the opposite, when the world's largest crypto exchange increases by 1,000 new people, it may signal that activity is about to increase, which is possible if new participants enter the market and buy, buy, buy.
Alex Dovbnya
Vladislav Sopov
Dan Burgin