Binance has hired and promoted a compliance executive who formerly worked for its competitor, Gemini, according to a Feb. 14 report from the Wall Street Journal.
The report indicated that Noah Perlman would serve as Binance’s chief compliance officer after joining the company’s compliance team in January.
Perlman previously worked at Gemini between October 2019 and January 2023, apparently leaving the company around the time it faced securities charges over its failed Earn program. Gemini replaced Perlman by promoting Christopher Mariadason to chief compliance officer in August 2022 — suggesting a brief overlap in that position.
Previously, Perlman and Mariadason both worked at the multinational investment firm Morgan Stanley in roles related to financial crime with some overlap in tenure. They worked for Morgan Stanley for more than 13 years and 8 years respectively.
Though it is common for firms to hire executives from their competitors, the hire is notable due to the fact Binance USD (BUSD) is under regulatory scrutiny.
Ongoing BUSD scrutiny
Binance’s partner Paxos faced action from the New York Department of Financial Services (NYDFS) this week. That development forced Paxos to stop issuing BUSD, and it may face securities charges as well. Binance could also face scrutiny even though it has attempted to distance itself from the matter — making any compliance hire a valuable asset.
Binance additionally hired a former Kraken compliance executive September 2022. At that time, it said that it planned to make hundreds of compliance hires.
Cryptocurrency firms are undoubtedly looking to strengthen their compliance teams with similarly experienced executives — that is, those that have worked in both traditional finance and the crypto sector — as the threat of regulatory action looms.
Click Here to Read the Full Original Article at Stablecoins News | CryptoSlate…
