Interview with Binance CEO Richard Teng: Binance's Global Ambitions, IPO, He Yi, CZ

Original Title: New Binance CEO Sees No Need for IPO as He Plots 100-Year Strategy for Crypto Exchange

Original Author: Cheyenne Ligon

Translation: Alvis, Mars Finance

Abstract

• Binance's Richard Teng has taken over as CEO from founder Zhao Changpeng, stating in an interview that the cryptocurrency exchange is in good financial health and therefore does not consider going public.
• Teng mentioned that Zhao Changpeng is currently serving a four-month sentence and is no longer involved in the company's operations, but his partner He Yi still is.
• Teng pointed out the need for atonement. "We acknowledge past mistakes. We have paid a heavy price for this."

Last year, Richard Teng took over Binance under unfavorable circumstances, as his predecessor Zhao Changpeng was forced to step down due to a multi-billion dollar settlement with the U.S. government.

In the nine months since taking over, Teng, who has served as a regulator in Singapore and the UAE, has worked to transform Binance from a founder-led organization into a board-led institution. Although the company has remained silent about its headquarters location and claims to be an "international company," Teng is looking for a long-term home.

Since the collapse of Binance competitor FTX at the end of 2022, cryptocurrency prices have surged, coupled with traditional financial institutions' support for the sector and the possibility that U.S. regulators may take a more lenient stance on cryptocurrencies, leading to speculation about an upcoming IPO.

However, in an interview in New York on Wednesday, Teng stated that the company is not considering going public. He said, "Our financial situation is very strong, and there is really no need to consider financing or an IPO right now. The company has been profitable and cautious with spending since the fifth month of Binance's operation, so [an IPO] is not a topic of discussion."

Teng stated that the exchange's efforts to improve transparency—including a 36% increase in compliance spending last year and the ongoing search for a permanent base—are aimed at building better relationships with global regulators and guiding the company towards future development. He emphasized, "We want to build a sustainable business that not only succeeds in the coming years but continues to thrive for the next 50 to 100 years."

Teng stated that the exchange's efforts to improve transparency—including a 36% increase in compliance spending last year compared to 2022 and the ongoing search for a permanent base—are all aimed at establishing better relationships with global regulators, thereby guiding the company towards a more future-oriented direction.

Teng said, "This is really about building a sustainable business that not only succeeds in the coming years but continues to thrive for the next 50 to 100 years." "This is certainly our aspiration."

Zhao Changpeng's Involvement

Teng was appointed CEO by Zhao Changpeng, who stepped down from the position as part of the company's $4.3 billion settlement with U.S. regulators over violations of sanctions and anti-money laundering (AML) laws. Zhao also admitted to failing to maintain proper anti-money laundering and know-your-customer (KYC) systems and was sentenced to four months in federal prison in June.

However, Zhao, who was once the public face of Binance, is no longer involved in the company's daily operations or decision-making. (He began serving his sentence in June.)

Teng said, "As part of the U.S. resolution, Zhao Changpeng cannot be involved in the company's operations."

However, Teng stated that Binance co-founder He Yi remains a "key part" of the cryptocurrency exchange's management team.

"He Yi is involved in all aspects of the business," Teng said, adding that she oversees Binance's human resources department and likes to joke that she is the exchange's chief customer service officer. "She is a very talented and very independent person."

Global Ambitions

When asked if Binance has considered raising funds to dilute Zhao Changpeng's ownership of the company, Teng declined and stated that such matters should be decided by the exchange's shareholders and board.

But Teng indicated that Zhao Changpeng's status as a convicted felon does not pose as significant a challenge to regulation as external observers might imagine.

"We do work closely with global regulators. In many parts of the world, this is not an issue. There may be some places that face challenges, but we have already resolved some of those issues," Teng said, referring to the licenses the company has recently obtained and the settlements reached in countries like Dubai, India, Thailand, and Brazil.

Teng emphasized that Binance must align with global regulators, make amends for past mistakes, and advance its business in a more transparent and regulated manner.

"We acknowledge past mistakes. We have paid a heavy price for this," Teng said. "Looking ahead, we are exploring how to work with global regulators to continue building a sustainable and robust platform."

Disinterest in the U.S.

One country Binance is currently not interested in is the United States, where the exchange faced hefty fines at the end of last year.

"Right now, we are really focused 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 a victory for Donald Trump could pave the way for clearer and friendlier cryptocurrency regulations, Teng stated that the election results do not matter much for Binance.

"Our business is outside the U.S.," Teng said. "So we are excitedly watching what happens in the U.S., but it has no impact on our business."