In an exclusive interview, Binance CEO Richard Teng discussed the significant changes underway at the cryptocurrency exchange, emphasizing a commitment to compliance and outlining plans for global expansion. Teng, who assumed the role on November 21 following Changpeng ‘CZ’ Zhao’s departure amid legal challenges, assured stakeholders that Binance is now a “totally different” entity.
Teng acknowledged the historical compliance issues that plagued Binance during its early growth phase but asserted that these challenges are firmly in the past. The new CEO highlighted the company’s $4.3 billion settlement with the U.S. Department of Justice, attributing it to lapses in compliance from its initial stages. However, he clarified that the settlement did not involve any misappropriation of user funds.
Addressing ongoing obligations to U.S. authorities, Teng confirmed Binance’s commitment to meeting the terms of the settlement, including a five-year monitorship and comprehensive compliance measures for a complete exit from the United States. While refraining from delving into specifics regarding the legal battle with the U.S. Securities and Exchange Commission (SEC), Teng assured that the company has factored in the costs associated with meeting these regulatory requirements.
Despite the challenges, Teng expressed enthusiasm about steering Binance through its growth agenda and collaborating closely with global regulators. He emphasized the company’s dedication to compliance, citing significant investments in recruiting talent with backgrounds in regulatory agencies and traditional financial institutions.
Binance’s strategic move to establish regional headquarters in the United Arab Emirates (UAE) for the MENA region and France for its European operations signifies a shift towards a more region-specific approach. Teng, drawing from his experience as CEO for Abu Dhabi Global Markets, highlighted the importance of regulatory clarity and fostering institutional adoption in these regions.
Commenting on recent regulatory developments in Europe, Teng welcomed the Markets in Crypto-Assets (MiCA) regulations, which he believes will provide a standardized framework for operating in multiple jurisdictions, addressing the previous disparity in rules.
Looking ahead, Teng acknowledged the challenging task of stepping into CZ’s shoes but emphasized the positive aspects of bringing fresh perspectives to a maturing company. Reporting to a board of directors, Teng aims to navigate Binance through its next phase of evolution, emphasizing compliance, global expansion, and a commitment to user fund security.
