Richard Teng Takes the Helm at Binance, Focusing on Compliance and Sustainability
Richard Teng, succeeding Changpeng ‘CZ’ Zhao, has taken the reins at Binance with a mission to strengthen regulatory compliance and ensure the sustainability of the company, while dismissing the idea of raising additional funds or conducting an IPO.
Under Teng’s leadership, Binance has increased its compliance expenses by 36% in 2023, surpassing $200 million, while aiming to establish a permanent headquarters to build trust with global regulators.
Despite regulatory challenges, particularly in the United States, Teng remains optimistic about Binance’s global expansion, focusing on regions where the company has successfully obtained licenses and strengthened its relationships with local regulators.
Transition and Legacy
We are in very good financial health, so there really is no need for us to consider raising funds or conducting an IPO at this stage.
Several sources report projections of 1,000 new positions set to be filled at Binance this year.
Richard Teng assumed the helm of Binance after CZ left his position due to a multi-billion dollar settlement with the US government. This departure was followed by CZ’s four-month prison sentence for failing to maintain adequate anti-money laundering and customer identity verification measures. While CZ is no longer involved in the daily management of Binance, his partner and co-founder of the company, Yi He, continues to play a crucial role within the company.
Despite these challenges, Teng inherited a financially healthy company. Contrary to popular belief, Binance has no plans to raise additional funds or go public through an IPO. In an interview with CoinDesk, Teng clearly stated that the company is strong enough to continue its growth without resorting to such measures.
A Strategy Focused on Compliance and Sustainability
Since his arrival, Teng has focused on transforming Binance from a founder-led organization into a company structured around a board of directors. One of Teng’s main goals is to strengthen Binance’s transparency and regulatory compliance. The company has increased its compliance expenses by 36% in 2023 compared to the previous year, surpassing $213 million, in an effort to improve its relationships with global regulators.
Teng also aims to establish a permanent headquarters for Binance, a matter that has long been neglected under CZ’s leadership. According to Teng, this step is crucial for building trust with regulatory authorities worldwide. ‘It’s really about building a sustainable business that will not only succeed in the coming years but continue to thrive for the next 50 to 100 years,’ he stated.
Global Expansion and New Challenges
As Binance continues its global expansion, the company faces regulatory challenges, especially in the United States, where it recently paid a hefty fine for violations of anti-money laundering laws. However, Teng emphasized that Binance is not currently seeking to grow in the US market, preferring to focus on other regions where the company has successfully obtained licenses and forged agreements with local regulators.
We are working closely with global regulators. In many places, it’s not an issue. There could be areas where it might be a challenge, but we have already resolved some of these issues.
On the other hand, Teng is optimistic about Binance’s ability to overcome the legal background challenges of CZ. He indicated that, in many jurisdictions, this is not a major obstacle to obtaining licenses or operating the platform.
