User base grows to 170M, $213M invested in compliance amid regulatory scrutiny.
In a year marked by regulatory challenges, Binance, the world's largest cryptocurrency exchange, has reported a significant increase in its user base. Despite a high-profile legal settlement in the United States and the stepping down of its founder, Changpeng Zhao, also known as CZ, the platform's number of accounts has surged by 30%, reaching an impressive 170 million.
Binance has not taken its regulatory responsibilities lightly. The company has invested a substantial $213 million in compliance measures, which includes enhancing surveillance and undergoing a meticulous security audit. This investment represents a 35% increase from the previous year and underscores Binance's commitment to operating within the regulatory frameworks. As part of its settlement agreements, Binance will also fund a compliance monitor approved by the U.S. government for the next five years.
The exchange's regulatory team has been busy, handling over 60,000 requests from law enforcement and conducting 120 training sessions. This proactive approach to compliance and law enforcement engagement demonstrates Binance's efforts to maintain a secure and transparent operating environment.
Amidst these regulatory challenges, Binance has not only retained but also expanded its customer base. The growth has been particularly notable in services like Binance Pay, Binance Earn, and its peer-to-peer (P2P) platform. Richard Teng, the new CEO at the helm, has pointed out the growing trust of institutional investors in Binance and the broader Web3 ecosystem, which is a positive sign for the industry's maturity and future prospects.
Despite the departure of CZ and a hefty $4.3 billion settlement with the U.S. Department of Justice, Binance's trajectory remains upward. The platform's ability to attract 40 million new customers in the face of adversity is a testament to its resilience and the enduring appeal of cryptocurrency. With a clear focus on regulatory compliance and a fortified security posture, Binance is poised to continue its expansion and play a leading role in the evolving digital asset landscape.
