Binance Bolsters Its Compliance

Binance Bolsters Its Compliance Team as Scrutiny of Crypto Increases / AP The announcement comes as authorities in the U.K. and Japan say th...

Binance Bolsters Its Compliance Team as Scrutiny of Crypto Increases / AP

The announcement comes as authorities in the U.K. and Japan say the business isn’t registered to operate in those countries. Binance Holdings Ltd. is expanding its international compliance team, as the world’s largest cryptocurrency exchange by trading volume faces increasing regulatory scrutiny worldwide.

The company, which was started by Changpeng Zhao in China about four years ago but which has no official headquarters, said it has expanded its compliance efforts with a few hires and advisory appointments this year, including a new compliance director in Europe. The announcement comes as authorities in the U.K. and Japan are taking aim at affiliates of Binance, saying the business isn’t registered to operate in those countries.

Mr. Zhao, the company’s chief executive, said in an open letter published this week that the exchange was committed to complying with appropriate local rules wherever it operates and has expanded its international compliance team and advisory board. 

He said the company plans to double its compliance team by the end of the year. A company spokesman declined to provide the exact size of its compliance team. “Compliance is a journey—especially in new sectors like crypto,” he wrote in the letter. “The industry still has a lot of uncertainty. We also recognize that with the growth comes more complexity and more responsibility.”

Binance Chief Executive Changpeng Zhao said the company plans to double its compliance team this year / DARRIN ZAMMIT LUPI.

Binance announced this week that Jonathan Farnell, who has experience in e-money and regulated financial products, has joined as a Europe-based director of compliance. Mr. Farnell, who started his new job a few months ago, previously was director of compliance at trading platform eToro Money UK Ltd. and a board member and head of compliance at eToroX, its crypto exchange, according to Binance.

Mr. Farnell’s focus at Binance includes advising its leadership team on the regulatory landscape, particularly on payment and cryptoasset services, as well as supporting licensing and the development of relationships with regulators and third-party service providers, he said Friday.

“The cryptocurrency industry is in a fascinating place right now, with rapidly evolving compliance requirements around the world,” he said. “I’m looking forward to playing my part and helping Binance continue its growth.”

Binance earlier this year also appointed two new compliance and regulatory advisers: Rick McDonell, the former executive secretary of the Financial Action Task Force, the global standard-setter for anti-money-laundering activity; and Josée Nadeau, the former head of the Canadian delegation to the FATF. Binance said the two would focus on providing guidance on regulatory policies and helping strengthen the company’s international anti-money-laundering programs.