Richard Teng, the CEO of Binance, has stated that the crypto exchange has left behind its compliance issues from the early days and has undergone significant changes. Teng took over as CEO after Changpeng “CZ” Zhao stepped down due to charges brought against him by the US Department of Justice. Teng explained that CZ is no longer involved in the day-to-day operations of the company as part of the settlement. Despite the challenges, Teng seems to be embracing his role as the head of the world’s largest cryptocurrency exchange.
Binance has faced significant consequences for mistakes made during its rapid growth since 2017. Teng acknowledged that the early compliance regime had shortcomings, which resulted in the largest crypto-related settlement in US history. However, he emphasized that the company has always prioritized the security and safety of user funds. While Binance is now responsible for the ongoing costs and scrutiny from US authorities, Teng did not comment on the ongoing legal battle between Binance.US and the US Securities and Exchange Commission.
Teng is bound by nondisclosure agreements regarding the $4.3 billion settlement and did not disclose the means of payment for the penalty. Binance is expected to pay its assessment, while CZ will personally pay the penalty in a separate case. The company also clarified that the movement of $3.9 billion worth of Tether (USDT) reported on November 21 was unrelated to the resolution of its matters with the US Justice Department.
The treatment of Binance compared to mainstream finance firms has been a topic of discussion among prominent figures in the cryptocurrency space, including Arthur Hayes and Mike Novogratz. Teng acknowledged that fines in the financial sector are not uncommon and highlighted that Binance operates in 18 different jurisdictions, making it potentially the most regulated exchange globally.
Binance is now highly focused on compliance and has been strategically hiring individuals with regulatory backgrounds to navigate the requirements in different jurisdictions. The company has established regional headquarters in the United Arab Emirates and France to cater to the Middle East and North Africa (MENA) and European markets, respectively. Teng, who previously served as CEO of Abu Dhabi Global Markets, sees clarity of rules and regulations and institutional adoption as crucial elements for the future of finance.
Stepping into CZ’s shoes is a challenging task for Teng, who recognizes that he cannot replace CZ’s role as a founder-CEO. However, he believes that a fresh face and new approaches can bring merit to the company. Teng will report to a board of directors, which will serve as the governing authority of Binance.
In his personal life, Teng maintains a routine that includes exercising and reading books. His most recent read is the biography of Elon Musk by Walter Isaacson. The full interview with Richard Teng is available on various podcast platforms.