Binance Moved Fast, Broke Things-and Paid the Price. Richard Teng Is Cleaning Up

Author: Joel Khalili, Wired

Translation by: Ismay, BlockBeats

Richard Teng does not wish to be compared to former Binance CEO Changpeng Zhao. He states that he wants to carve his own path rather than fill someone else's shoes.

In November 2023, Teng took over as Binance CEO after Zhao, known in the industry as CZ, pleaded guilty. CZ admitted to violating anti-money laundering regulations and U.S. sanctions, and this plea was part of a comprehensive settlement agreement with the U.S. Department of Justice, ending years of speculation about potential criminal wrongdoing by Binance. Subsequently, CZ was sentenced to four months of federal imprisonment and has completed his sentence.

CZ founded Binance in 2017 and is considered a legendary figure in the crypto industry, known for his confident statements and active presence on social media. In contrast, Teng has a gentle demeanor, is approachable, and carries a relaxing smile. According to insiders, he was well-received by Binance employees upon his appointment.

Teng has served as a regulatory official in Singapore and the UAE, and now he is working to transform Binance from a "challenger" that evaded rules, had an opaque corporate structure, and lacked a global headquarters, into a more transparent and compliant enterprise. He stated that Binance currently holds more regulatory licenses in various countries around the world than any of its competitors. In March of this year, Binance established its first board of directors, primarily composed of company executives.

Under Teng's leadership, the strong growth of the crypto market has also propelled Binance's development, with its user base growing from approximately 170 million to around 240 million. Teng noted that nearly 30% of users registered in 2024. Despite having legal disputes with the U.S. Department of Justice, Binance remains the largest crypto trading platform in the world.

However, even as Teng plans a new direction for Binance, CZ's influence lingers. According to the settlement agreement with the Department of Justice, CZ cannot directly manage Binance, but at the end of January this year, he joined the venture capital firm Binance Labs as an advisor, which has recently been renamed YZi Labs.

Ella Zhang, head of YZi Labs, insists that the organization has operated independently from Binance since its establishment in 2018, contrary to some reports. However, she also stated that the organization's funding "primarily comes from the personal assets of Binance's founder." Meanwhile, as Binance's largest shareholder, CZ still holds influence over major company decisions, which may limit Teng's room for reform.

In January of this year, Teng was interviewed by WIRED during the CfC St. Moritz conference in Switzerland. Below are the organized excerpts from the interview to ensure clarity and conciseness.

WIRED: CZ has completed his sentence and remains the largest shareholder of Binance. Do you maintain regular contact with him? What will his role in Binance be in the future?

Richard Teng: My senior management team and I report to the board of directors, and CZ is not on the board, so I do not have regular communication with him.

However, he is the largest shareholder of Binance and still enjoys shareholder rights. Even in large publicly listed companies globally, shareholders have the right to vote on the direction of the company.

WIRED: But when the founder of the company—someone who is almost synonymous with Binance—remains the largest shareholder, do you think it will be difficult to push Binance into a new era?

Richard Teng: Our goals are very clear: to build a globally leading, sustainable top-tier platform. In this regard, I work closely with the senior management team and the board of directors.

WIRED: How do you want the outside world to view the difference between the CZ era and the Richard Teng era?

Richard Teng: CZ founded Binance in 2017, when the industry environment was completely different—institutions had not yet entered the space, and there were almost no relevant regulations and regulatory requirements. The environment back then was worlds apart from what it is now.

Since I took over, we must adapt the company to the new industry environment—one that demands higher compliance, and where the regulatory framework is gradually becoming clearer, although inconsistencies and lack of coordination still exist among jurisdictions.

We have invested significant resources in our compliance system. Currently, Binance has become one of the most regulated trading platforms globally, having obtained regulatory licenses in 21 different countries or regions. This is our direction for future development.

WIRED: What specific measures have you taken to ensure that Binance does not repeat past mistakes that led to CZ's imprisonment?

Richard Teng: Last year, we held nearly 100 training sessions and workshops for law enforcement agencies around the world, covering investigative techniques. The nature of crypto technology is inherently traceable, and we want to emphasize how to leverage this characteristic to deter, detect, and prevent the actions of wrongdoers.

We aim to work closely with global competitors and law enforcement agencies to ensure the sustainable development of the industry and jointly curb financial crimes.

WIRED: According to the settlement agreement with the U.S. Department of Justice, Binance needs to be overseen by external agencies. What does this mean in practical terms?

Richard Teng: We currently have two external regulatory teams: one designated by the U.S. Department of Justice and the other by the Financial Crimes Enforcement Network (FinCEN). We maintain close cooperation with both teams.

Our goals are aligned—to ensure continuous investment and strengthen our compliance system. If we have any unnoticed blind spots, the compliance regulatory teams will provide assistance. They will review our compliance processes, request data, and suggest areas for improvement.

For me, this is extremely valuable. It is not just about our self-recognition, but rather an independent external perspective validating that we are indeed moving in the right direction.

WIRED: In the past, Binance has positioned itself as a global company without a headquarters. How has this situation changed under your leadership?

Richard Teng: This is a matter we are very focused on. As Binance is regulated globally, the two most basic requirements from regulators are to establish a board of directors—we have appointed relevant members—and to set up a global headquarters.

We are currently engaged in in-depth discussions regarding the location of the global headquarters, which is a complex decision-making process that requires consideration of multiple factors, such as whether we can establish a talent base in that country and whether the regulatory framework is suitable, among others. We are currently in deep communication with multiple jurisdictions.

WIRED: What is Binance's strategy in the U.S. following the new Trump administration?

Richard Teng: The U.S. market is not our focus at the moment. Whether we will reconsider in the future depends on how the local regulatory environment develops. Our current strategy is to concentrate our efforts on markets with significant growth potential globally.

However, 2024 is indeed a milestone year. The U.S. has approved a Bitcoin ETF, and subsequently, many other jurisdictions have followed suit. This change has shifted institutional investors from skepticism to trust, and many previously cautious institutions—including family offices, foundations, and endowments—are beginning to allocate to crypto assets.

We believe this trend will continue to heat up in 2025, especially after the U.S. welcomes a president who supports cryptocurrencies.

WIRED: What does a U.S. government that supports cryptocurrencies mean for the entire crypto industry?

Richard Teng: For a long time, the crypto industry has been striving for legitimacy, hoping for clear rules and a regulatory framework. The influence of the U.S. globally is extremely important.

Under the new administration, President Trump will appoint regulatory officials who are very supportive of cryptocurrencies. His discussions about establishing a Bitcoin strategic reserve have already changed the mindset of global sovereign wealth funds. Once the U.S. begins to consider this move, many countries around the world will follow suit.

Policymakers will closely monitor President Trump's appointment of a head for AI and cryptocurrency affairs. There must be deeper considerations behind this, and other countries will also contemplate whether to take similar actions.

What is beneficial for the entire industry is also good for us.

WIRED: Do you have contact with David Sacks, the head of AI and cryptocurrency affairs in the U.S.? What are your thoughts on his appointment?

Richard Teng: The content of our private meetings is always confidential.

WIRED: Changing the subject, I want to talk about the challenges to the trading platform business model. Over the past year, ETFs have provided investors with an alternative way to enter the crypto market. At the same time, the trading volume of peer-to-peer trading platforms has for the first time accounted for one-fifth of the market. How do you view these competitive pressures?

Richard Teng: We believe that the liquidity costs of gaining exposure to crypto assets through ETFs are very high. ETFs can only be traded from Monday to Friday, while market news is continuous 24/7. From a hedging and risk management perspective, ETFs are not the ideal tool. ETFs are merely the first step for investors to enter the crypto market, not the final destination.

As the crypto market becomes more mainstream and institutionalized, we believe that both centralized and decentralized trading platforms will continue to grow.

To achieve the goal of one billion users, we must continuously launch new product features. Last year, we launched wallets and Binance Square (a social platform focused on the crypto space). The payments business is also an important growth area—since the launch of Binance Pay two years ago, our transaction volume has approached $26 billion.

In addition to trading fees—the core source of income for trading platforms—we will also continue to explore other opportunities that can help users deepen their crypto journey.