Binance, the world’s largest cryptocurrency exchange, quietly hired the former global head of compliance at rival exchange Kraken a few months ago, according to a Friday (23rd) Twitter post by CEO Changpeng. CZ” Zhao.

“Steve [Christie] joined us a few months ago”, revealed the director, adding that the company intends to hire a few hundred more people for the area.

According to a report by the Wall Street Journal, a Binance spokesperson stated that Christie, who has worked in Kraken’s compliance area for more than four years, joined Binance as Senior Vice President of Compliance in May, that is, almost five years ago. months, “as the crypto industry continues to step up its compliance efforts.”

As the spokesperson explained to the newspaper, Christie now leads a global compliance team at Binance that has at least 750 people, including a team dedicated to fighting cybercrime. On the other hand, Kraken expects to hire a new director for the area in the coming weeks.

Compliance is a sensitive area for Binance, especially when it comes to KYC operations, or “know your customer”. The company is often embroiled in controversy due to an alleged weakness of this type of procedure – something the exchange denies.

In June, an investigation by the Reuters news agency showed that the company may have been used as a conduit for criminals to launder billions of dollars in illicit funds over the past five years. The news agency estimates that, between 2017 and 2021, around US$2.35 billion – the equivalent of almost R$12 billion – in cryptocurrencies stemming from hacks, investment fraud and illegal drug sales, would have been sent to the brokerage as a form of money laundering.

In Brazil, the broker faces problems in adapting to regulations of the type, which caused the exchange of banking partners in the country and problems when withdrawing money from the platform. In July, user groups began to be required to fill out a kind of “declaration of wealth” in order to withdraw their funds.

Changes at Kraken

The executive’s change is another piece in the musical chairs at brokerage Kraken. On Wednesday (21), Jesse Powell stepped down as CEO of Kraken and, according to the company, he also plans to step down as chief executive, but will remain as chairman. Powell is both a respected and controversial figure in the crypto world and a huge supporter of Bitcoin.

According to Kraken, Dave Ripley, its current COO, will succeed Powell after the company completes its search for a new COO.

The WSJ also recalled a Kraken investigation by the US Treasury Department’s Office of Foreign Assets Control (OFAC). The body is investigating whether the cryptocurrency exchange may have violated economic sanctions against Iran.

The paper concludes by noting that the demand for compliance and legal talent in the crypto sector has increased in recent months, despite falling cryptocurrency prices and layoffs, as the sector faces increasing regulatory pressure.

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