Crypto exchange Binance experienced significant growth in its user base in 2023, according to CEO Richard Teng. Despite facing challenges such as a settlement with U.S. regulators and the departure of founder Changpeng “CZ” Zhao, Binance managed to attract new users and maintain robust net inflows.
In its end-of-year report, Binance highlighted the strong performance of its exchange products, including Binance Pay, Binance Earn, and its peer-to-peer platform. Additionally, Teng mentioned the growing interest from institutional investors, indicating a broader appeal beyond individual traders.
The exchange added a substantial 40 million accounts, bringing its total user base to 170 million. This growth demonstrates Binance’s ability to attract and retain customers despite the regulatory hurdles it faced throughout the year.
To ensure compliance with regulations, Binance invested heavily in this area, spending $213 million in 2023 alone. The company increased its surveillance efforts to detect wash trading on the exchange and NFT marketplaces. It also developed an in-house case management system for transaction monitoring and underwent a security audit, which was completed in the same year.
The expenditure on compliance represented a 35% increase compared to the previous year, and Binance anticipates even higher costs in the future. As part of its settlement with U.S. authorities, the exchange agreed to hire a government-approved compliance monitor for the next five years, further emphasizing its commitment to regulatory compliance.
Binance’s regulatory liaison team played a crucial role in managing law enforcement requests, processing nearly 60,000 inquiries from agencies worldwide in 2023. The team also conducted 120 training sessions, highlighting the exchange’s dedication to maintaining a strong relationship with regulatory authorities.
In conclusion, Binance’s CEO Richard Teng expressed confidence in the company’s long-term prospects, stating that it is built to last for decades. Despite the challenges faced in 2023, Binance’s growth in user base and commitment to compliance demonstrate its resilience and determination to remain a leading player in the cryptocurrency exchange industry.