Binance CEO Richard Teng has affirmed that the days of compliance gaps at Binance are long gone and that the crypto exchange has undergone a complete transformation. Teng, who previously served as the head of regional markets for Binance, assumed the position of CEO on November 21 after Changpeng “CZ” Zhao stepped down due to charges brought against him by the US Department of Justice.
Teng explained that as part of the settlement, CZ is prohibited from being involved in the day-to-day operations of the company. Despite this, Teng appears to relish the challenges that lie ahead as the CEO of the world’s largest cryptocurrency exchange. In an interview with Cointelegraph just two weeks after taking over from CZ, Teng expressed his enthusiasm for leading Binance.
Teng believes that the dark cloud that has been hanging over Binance in recent months is starting to dissipate following the massive $4.3 billion settlement with the Justice Department over a range of US regulatory and sanctions violations. The exchange has paid a hefty price for mistakes made during its rapid growth since 2017. However, Teng insists that the company has always prioritized the safety and security of user funds.
Binance now faces ongoing costs and scrutiny as part of its settlement with US authorities, including a five-year monitorship and significant compliance obligations to ensure a complete exit from the US market. Teng refrained from discussing the details of Binance.US’s legal battle with the US Securities and Exchange Commission, but he stated that the company has accounted for the costs associated with meeting the settlement requirements and resolving its case with the SEC.
Teng is bound by nondisclosure agreements regarding the $4.3 billion settlement and cannot comment on the payment of the penalty. It is understood that Binance is in the process of paying the assessment, while CZ will personally cover a separate case against him.
Binance’s recent movement of $3.9 billion worth of Tether (USDT) is unrelated to its settlement with the US Justice Department, according to the company.
The treatment of Binance compared to traditional financial institutions has drawn attention from prominent figures in the cryptocurrency industry, such as former BitMEX CEO Arthur Hayes and Galaxy Digital’s Mike Novogratz. Teng acknowledges that fines in the financial sector are not uncommon and believes that Binance could be considered the most regulated exchange globally, given its operations in 18 different jurisdictions.
Moving forward, Binance is committed to compliance and has made significant investments in hiring individuals with regulatory and financial institution backgrounds to navigate requirements in various jurisdictions.
Binance has established regional headquarters in the United Arab Emirates for its Middle East and North Africa operations and in France for its European operations. Teng, who previously served as the CEO of Abu Dhabi Global Markets, sees the UAE as a favorable location for the cryptocurrency and blockchain sector due to its clear rules and regulations. The implementation of the European Union’s Markets in Crypto-Assets regulation also presents promising opportunities for Binance in the region.
While stepping into CZ’s shoes is no easy task, Teng recognizes the value of a fresh perspective and new approaches. As the new CEO, Teng will report to a board of directors that will govern the company.
In his personal life, Teng aims to maintain a routine that includes exercise and reading. His most recent read was the biography of Elon Musk by Walter Isaacson.
To listen to the full interview between Cointelegraph and Richard Teng, visit popular podcast platforms such as Spotify, Apple Podcasts, or Google Podcasts.