Binance reports 2022 results

In 2022, Binance processed over 47,000 law-enforcement requests, with an average response time of three days. This is stated in the year-end report of the cryptocurrency exchange.

The company noted that over the past year it increased its security team’s headcount by more than 500%. The size of the compliance team surpassed 750 people.

“Among the key staff hired during this period were 10 executives and managers from around the world, as well as 24 compliance professionals at the country- and region-level or responsible for anti-money-laundering reporting,” Binance said.

Overall, the company’s total headcount exceeded 7,500 employees in the year, amid mass layoffs in the industry.

According to the report, the exchange improved its KYC procedures: expanded the list of identity documents, and introduced new verification methods. In 2022 the platform processed daily trading volume of $2 billion at a rate of around $1.4 million transactions per second, and expanded the list of assets to 357 coins.

The number of active users of the Binance Earn service in 2022 nearly doubled — from 3.7 million to 6.14 million. During the reporting period the exchange processed more than 255 million P2P transactions.

The company also reported growth in the number of active institutional clients by 65%. Trading volumes of futures in this segment rose by 62%.

For Q4, the growth in new institutional clients was driven by:

• Greater China — 15.09%;
• Asia-Pacific region — 17.69%;
• European Union — 14.51%;
• CIS — 24.79%;
• Middle East and North Africa — 34.23%;
• Latin America — 16.08%.

In the report, it was noted that in the wake of the FTX collapse in November, they increased SAFU-fund to ~$1 billion, and launched the Proof-of-Reserves feature. In early December Mazars published an audit report on Binance, which experts criticized. Later CryptoQuant analysts confirmed the accuracy of the data provided by the firm.

Binance also emphasised transparency for all market participants. In the report, it laid out six key principles of centralized crypto exchanges, formulated by CEO Changpeng Zhao:

1. Be careful with user funds.
2. Never use native tokens as collateral.
3. Share real proof of assets.
4. Maintain strong reserves.
5. Avoid excessive leverage.
6. Strengthen and apply security protocols.

Another step, intended to reduce the negative impact of the FTX collapse on the industry, was the launch of the Recovery Fund. The platform contributed $1 billion to it and announced plans to raise that amount to $2 billion.

By year-end, Binance held licenses and registrations in 14 jurisdictions. Among the countries was Poland, with the exchange saying on January 18, 2023 that it had obtained approval for its subsidiary.

In January 2023 Zhao announced plans to increase the exchange’s staff by 15–30%.

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