- Despite recent legal troubles, crypto exchange Binance’s user base grew 30% in 2023 to reach 170 million users. Growth remained steady after its November settlement over banking violations.
- Product adoption increased across Binance’s offerings, including its exchange, payments, lending, and P2P platforms. Institutional investor interest also rose.
- Binance spent 35% more on compliance in 2023, boosting surveillance, building in-house systems, and undergoing an audit. Spending will likely continue rising as part of its settlement deal.
Crypto exchange Binance’s user base grew 30% in 2023 despite recent legal troubles, according to CEO Richard Teng. This growth signals Binance’s continued strength as the world’s largest cryptocurrency trading platform.
User Growth Remained Steady Post-Settlement
In Binance’s end-of-year report, Teng said “net inflows have been very robust, while new users continued coming in steadily” following founder Changpeng “CZ” Zhao’s guilty plea in November. As part of the plea deal, Binance agreed to pay $4.3 billion for violating U.S. banking laws.
Product Adoption Saw Increases Across the Board
Growth was not limited to Binance’s exchange products. Binance Pay, Binance Earn, and its peer-to-peer platform all saw increases in adoption. Teng also reported strong interest from “institutional investors.” Overall, Binance added 40 million accounts in 2023 to reach 170 million users.
Compliance Spending Increased 35%
The company spent $213 million on compliance in 2023, a 35% increase from 2022. Binance boosted its surveillance of wash trading, created an in-house case management system, and underwent a security audit. Spending will likely rise next year as part of Binance’s deal to pay for a U.S. government-approved compliance monitor.
Assistance for Law Enforcement Expanded
In 2023, Binance’s regulatory liaison team processed nearly 60,000 requests from law enforcement agencies globally. The team also conducted 120 training sessions as Binance aims to collaborate more with regulators.
The report shows Binance’s continued growth despite recent legal troubles. With expanded compliance efforts underway, the crypto giant seems poised for further expansion in 2024.
