Binance CEO Richard Teng has emphasized that the cryptocurrency exchange has moved past its historical compliance issues and is now a “totally different” entity.
Teng, who assumed the CEO role on November 21 after Changpeng ‘CZ’ Zhao resigned due to charges brought by the U.S. Department of Justice, explained that as part of the settlement, CZ cannot be involved in the day-to-day operations of the company.
In an interview with Cointelegraph, Teng expressed his enthusiasm for leading the world’s largest cryptocurrency exchange and stated his commitment to working closely with global regulators to advance Binance’s growth agenda.
He believes that the regulatory concerns that have plagued Binance in recent months are starting to dissipate after the exchange agreed to a $4.3 billion settlement with U.S. authorities for various violations of U.S. regulations and sanctions programs.
Teng acknowledged that Binance’s early compliance practices had shortcomings, leading to the significant settlement.
However, he stressed that the security and safety of user funds have always been a top priority, and no allegations of misappropriation of user funds were made by U.S. authorities during their scrutiny.
The settlement requires Binance to undertake ongoing compliance efforts, including a five-year monitorship and steps to ensure the company’s complete withdrawal from the United States.
While Teng did not delve into details about Binance.US’s legal battle with the U.S. Securities and Exchange Commission (SEC), he asserted that the company had accounted for the costs associated with meeting settlement requirements and addressing the SEC case.
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Teng could not comment on the specific payment method for the $4.3 billion penalty due to non-disclosure agreements.
He clarified that the movement of $3.9 billion worth of USDT tokens reported on November 21 was unrelated to the settlement with the U.S. Justice Department.
Regarding comparisons between Binance’s treatment and that of mainstream financial firms, Teng noted that financial sector fines are not uncommon and emphasized Binance’s commitment to being one of the most regulated exchanges globally, operating in 18 jurisdictions.
Binance is actively investing in compliance and has recruited talent with regulatory and financial institution backgrounds to navigate regulatory requirements.
While Binance remains a global operation, it has established regional headquarters in the United Arab Emirates (UAE) and France to bolster its presence in the MENA and European regions, respectively.
Teng highlighted the importance of regulatory clarity and institutional adoption in fostering the cryptocurrency ecosystem’s growth.
In conclusion, Teng acknowledged the challenges of succeeding CZ as CEO but stressed that Binance had evolved significantly over the years.
He plans to bring his own values and expertise to the company, which will now report to a board of directors as the governing authority.
In his personal life, Teng enjoys staying active through exercise and is an avid reader, with Elon Musk’s biography being his recent choice.
