Binance, the world’s largest digital asset trading platform by market capitalization, has increased its budget to focus on compliance issues and international policies, as per a new report. The firm has raised its year-over-year spending on compliance from $158 million to $213 million.
As reported earlier by TheCoinRise, the US arm of the exchange has found itself entangled in regulatory complexities in various states across the country. Local authorities in Florida and Alaska have questioned the exchange’s compliance with local laws.
Binance Purchases a Fleet of New Software Systems
As per the report from Fortune, Binance has purchased a fleet of new software systems that will be capable of blocking and reporting suspicious transactions. Further, the increased compliance budget also reflects personnel costs, as the firm has decided to bring back executive Steve Christie as its deputy chief compliance officer.
“We have significantly matured our compliance culture. This is made possible with the quality of our talent, who continue to meet the new challenges and opportunities of this exciting and fast-evolving industry,” said Richard Teng, the chief executive of the firm.
$3.5B in New Funds
As per a spokesperson, Binance has enjoyed the same surge in users as other digital asset trading platforms following the collapse of FTX, a crypto exchange co-founded by disgraced crypto entrepreneur Sam Bankman-Fried.
The report states that Binance made over $3.5 billion in new funds in January, the most in a month since November 2022. Notably, the total assets on the crypto trading platform are now over $80 billion—$10 billion higher than before the former chief executive and co-founder Changpeng Zhao stepped down.
Return of Former Binance Exec Steve Christie
In an interview with Fortune, Christie stated that he chose to return to Binance after taking some personal time with his family, while also adding that the compliance culture at the company is stronger than ever.
He attributed the strong culture to the presence of Chief Compliance Officer Noah Perlman, who is the former global head of financial crimes at Morgan Stanley.
“The amount of tech Binance has for compliance, due diligence, and transaction monitoring is unparalleled, said Christie. “There’s more tech at your fingertips than anywhere I’ve worked.”
Settlement with the DoJ
It is important to note that Binance recently settled a lawsuit filed by the Department of Justice (DoJ), paying a whopping $4.3 billion as a fine. On the other hand, its lawsuit with the Securities and Exchange Commission (SEC) is currently going on.
The exchange is targeting a dismissal of the SEC lawsuit, stating that its operations do not fall under the SEC’s jurisdiction.