Binance Cranks Institutional Leverage to 5x as Compliance Chief Reportedly Shops for Exit

Binance has rolled out an upgraded institutional loan product with higher leverage, broader access, and fixed-rate options — just as its chief compliance officer reportedly considers jumping ship before the music stops.

The exchange bumped maximum leverage from 4x to 5x for all eligible risk units. Know Your Business-verified clients at VIP 1 and above now qualify, a significant relaxation from the previous VIP 5 threshold. Existing VIP clients were automatically upgraded — because nothing says "we trust you" like handing degens more rope.

Loan-to-value ratios also got a boost, climbing from 75% to 80%. Transfer-out LTV moved to 83%, while margin call and liquidation thresholds stayed put at 85% and 90%, respectively. For those doing the math at home: still enough room to get rekt, but hey, at least you'll see it coming.

Binance also introduced fixed-rate term loans with 30-, 60-, and 90-day options. Unpaid balances roll over to the prevailing variable rate upon expiry. Nothing like locking in rates for three months while the market does its best impression of a roller coaster.

Co-CEO Richard Teng touted the changes, saying the exchange continues raising standards for institutional clients. Presumably standards that don't involve, you know, actually reducing leverage.

Meanwhile, Chief Compliance Officer Noah Perlman is reportedly in talks about leaving the company. Binance says there's no confirmed exit date and no successor identified yet. Several other senior compliance staff have already exited, including those handling sanctions, investigations, and financial crime monitoring. The compliance department looking more like a revolving door these days.

Perlman joined Binance in 2023 following the firm's $4.3 billion settlement with U.S. authorities. The company says it expanded compliance-related staff by more than 30% and reduced illicit exposure by 97% between January 2023 and June 2025. That's a whole lot of hiring and a whole lot of bad actors shown the door.

Whether Binance can maintain those improvements amid ongoing personnel turnover will likely shape how regulators view the exchange's compliance trajectory in the months ahead. Nothing says "we've got this" quite like your compliance team doing the wave out the exit.