Interview with Binance CEO Richard Teng: Binance’s global ambitions, IPO, He Yi, CZ

summary

• Binance’s Richard Teng, who succeeded founder CZ as CEO, said in an interview that the cryptocurrency exchange is in good financial shape and is not considering going public.
• Teng said CZ, who is currently serving a four-month prison sentence, is no longer involved in the company's operations, but his partner He Yi is still there.
• Teng noted the need for atonement. "We acknowledge past mistakes. We paid a heavy price for that."

Richard Teng took over Binance last year under adverse circumstances as his predecessor, CZ, was forced to leave over a multi-billion dollar settlement with the U.S. government.

In the nine months since taking over, Teng, who previously worked as a regulator in Singapore and the United Arab Emirates, has worked to transform Binance from a founder-led organization to one led by a board of directors. Although the company remains silent about where its headquarters are and claims to be an “international Company,” but Teng is looking for a place to call home long-term.

The sharp rise in cryptocurrency prices since the collapse of Binance competitor FTX in late 2022, coupled with support from traditional financial institutions for the space and the possibility of a more relaxed attitude toward crypto by U.S. regulators, has sparked speculation about the upcoming IPO. Speculation of an IPO.

However, in an interview in New York on Wednesday, Teng said the company is not considering going public. “We are in a very strong financial position and there is really no need to think about financing or an IPO right now,” he said. Since Binance’s fifth month of operation, the company has Profitable and spending prudently, so [IPO] is not a topic for discussion.”

Teng said the exchange’s efforts to increase transparency — including a 36% increase in spending on compliance last year and a continued search for new places to put down roots — are aimed at building better relationships with global regulators and guiding the company toward the future. He also stressed: "We want to build a sustainable business that will not only be successful in the next few years, but will continue to thrive in the next 50 to 100 years."

Teng said the exchange’s efforts to increase transparency — including a 36% increase in compliance spending last year from 2022 and an ongoing search for new places to put down roots — are all part of an effort to build better relationships with global regulators. relationships, thereby guiding the company in a more future-oriented direction.

“It’s really about building a sustainable business that not only succeeds in the next few years, but continues to thrive in the next 50 to 100 years,” Teng said. “That’s certainly our aspiration.”

CZ’s involvement

Teng was appointed CEO by CZ , who resigned as CEO of Binance as part of the company’s $4.3 billion settlement with U.S. regulators over violations of sanctions and anti-money laundering (AML) laws. Pleaded guilty to failing to maintain adequate anti-money laundering and know-your-customer (KYC) systems and was sentenced in June to four months in federal prison.

But CZ, once the public face of Binance, is no longer involved in the company’s day-to-day operations or decision-making. (He began serving a four-month prison sentence in June.)

“As part of the U.S. resolution, CZ cannot participate in the operation of the company,” Teng said.

However, Teng said Binance co-founder He Yi remains a “key component” of the cryptocurrency exchange’s management team.

“He Yi is involved in every aspect of the business,” Teng said, adding that she runs Binance’s human resources department and likes to joke that she is the exchange’s chief customer service officer. Independent people. "

Global ambitions

When asked if Binance had considered raising funds to dilute CZ ownership of the company, Teng declined, saying such matters should be decided by the exchange’s shareholders and board of directors.

But Teng said CZ's status as a felon was not as big a challenge to regulation as outside observers imagined.

“We do work closely with regulators around the world. In many parts of the world, this is not an issue. There may be places where there are challenges, but we have resolved some of those issues,” Teng said, referring to the company’s recent license evidence and settlements in countries including Dubai, India, Thailand and Brazil.

Teng stressed that Binance must come to terms with global regulators, make up for past missteps, and advance its business in a more transparent and regulated manner.

“We acknowledge our past mistakes. We have paid a heavy price for this,” Teng said. “Looking forward, we are looking at how we can work with global regulators to continue to build a sustainable and robust platform.”

Not interested in the United States

One country Binance is not currently interested in is the United States, which slapped a hefty fine on the exchange late last year.

“Right now, we’re really focusing on markets outside the U.S.,” Teng said.

While many in the cryptocurrency industry are eagerly awaiting the outcome of the upcoming U.S. presidential election, hoping that Donald Trump’s victory will pave the way for a clearer and more friendly cryptocurrency regulatory regime, Teng said that The election results mean little to Binance.

“Our business is outside the U.S.,” Teng said. “So we are watching what’s happening in the U.S. with great excitement, but it has no impact on our business at all.”