- The new CEO is optimistic about Binance’s future
- There were “gaps in compliance” in the early days
Richard Teng came to the fore of Binance after Changpeng ‘CZ’ Zhao stepped down, pleading guilty to charges from US authorities. Teng told Cointelegraph in an interview that CZ can no longer take part in daily operations as part of the $4.3 billion settlement with the US Justice Department.
The challenges ahead
The new CEO is optimistic about Binance’s future. The exchange’s regulatory omissions cost it a pretty penny, and Teng believes the clouds are lifting. Binance has undergone a meteoric rise in the six years since its founding. Teng shared that Zhao built the exchange from a team of a few people to a global operation with thousands of staff and more than 160 million users.
He admits there were “gaps in compliance” in the early days, leading to mistakes and breaches and the biggest crypto-related settlement in the history of the US.
User safety remains top priority
Teng assured the company has always maintained the safety and security of user funds. There have never been any allegations of fund misappropriation. Binance will be subject to monitoring for a period of five years and other compliance undertakings to make sure it “exits the United States completely.”
The new chief of the exchange must comply with non-disclosure agreements regarding the hefty settlement. Binance is in the process of paying the $4.3 billion fine.
Unfair treatment
Mike Novogratz of Galaxy Digital and other prominent figures in the cryptocurrency space have drawn attention to the disparity between how Binance and traditional finance companies have been treated. Despite equally significant, if not bigger compliance issues, mainstream firms don’t seem to have been subject to the same treatment. Teng commented that financial institutions have paid a total of $90 billion in fines.
The most regulated exchange
The fact that Binance operates in more than a dozen jurisdictions potentially makes it the “most regulated exchange globally” according to Teng. What’s more, it remains intensely focused on compliance.
Replacing CZ
Teng expressed understanding that he can’t replace CZ, but he can bring his expertise and values to the table in a changing context. He stated Binance was a completely different company with different needs six years ago.
It remains a global operation, but it now has two regional headquarters – France and the United Arab Emirates (UAE). Teng is familiar with the latter, where he lived for nine years and worked as CEO for Abu Dhabi Global Markets. In this position, he established a cryptocurrency framework for the local ecosystem.
Prerequisites for mass adoption of crypto
According to Teng, institutional adoption and clarity of regulations are the two prerequisites for the mass adoption of crypto. The UAE attracts global crypto platforms as a base of operations in the MENA region.
The European Markets in Crypto-Assets Law (MiCA) can help Binance expand into new markets. This was an issue before. In June this year, Binance was forced to pull out of the Netherlands after failing to obtain a local virtual asset service provider (VASP) license.
