Richard Teng, the recently appointed leader of Binance, faces the challenge of maintaining the competitiveness of the world's largest cryptocurrency exchange amidst severe financial sanctions and increased scrutiny from the US government.
As reported by Fortune, the new CEO of Binance expressed that the exchange is currently undergoing a transition phase, evolving from a dynamic tech startup to a more conventional financial entity. Drawing an analogy, he likened the company to a child preparing for preschool. Acknowledging the rapid growth phase, he openly admitted that Binance made several mistakes during this period. Despite becoming the world's largest cryptocurrency firm within just a year of its establishment, he emphasized that valuable lessons have been learned along the way.
Teng expresses confidence in his capability to assume Zhao's position, highlighting his skill in guiding the challenged exchange toward progress.
“I need to stress that I have the confidence and trust of CZ, the leadership team, and our staff members for me to lead this very important franchise going forward. And that confidence is very important. I think that transcends the responsibility of our 150 million users, and the livelihood of our 1,000 employees.”
Richard Teng, new Binance CEO
Teng emphasized that a key objective for him is to facilitate the cryptocurrency industry in attaining universally synchronized regulations, akin to the longstanding regulatory frameworks in the banking sector. This involves addressing the ongoing discourse on categorizing various digital assets as commodities, securities, or other classifications that accurately represent the underlying blockchain technology.
In response to inquiries about the possibility of Binance adopting a conventional corporate structure during his tenure, Teng affirmed the decision. He explained that the structure would encompass a board of directors, a stable address, and a commitment to financial transparency.
Once you have all those corporate structure in place, I think those financials will be what we’ll be sharing. We’ve all known that auditors [require them], but the regulatory agencies will require all those things as well. So we are committed to transparency as an organization
Richard Teng
Two years ago, Teng joined Binance, initially serving as the head of the Singapore branch and later assuming the role of overseeing all regions outside the United States. With over three decades of experience in financial services and regulation, he held notable positions at the Global Markets Financial Services Authority in Abu Dhabi and the Singapore Exchange.
Following Changpeng Zhao's departure from the CEO position in November, Teng stepped into the role.
The US Securities and Exchange Commission (SEC) has accused the crypto exchange's management, including CZ, of engaging in securities transactions without proper registration and providing misleading information to investors regarding regulatory oversight.
Subsequently, the exchange faced a $4.3 billion fine, and its former CEO is charged with criminal violations, including those related to the Bank Secrecy Act.