New CEO Richard Teng confirms Binance has no plans for an IPO, emphasizing the company’s strong financial position and profitability since its early months.
Binance has increased compliance spending by 36% to build better relationships with global regulators and aims to transform into a board-led organization.
Teng acknowledges past errors and stresses the importance of transparency and regulation, with a vision for long-term sustainability and global expansion, excluding the U.S. market.
In a recent interview, Richard Teng, the new CEO of Binance, made it clear that the cryptocurrency exchange has no plans for an initial public offering (IPO).
Teng, who took over from founder Changpeng “CZ” Zhao in November, emphasized that Binance is in a strong financial position and does not require additional fundraising through an IPO.
Teng highlighted that Binance has been profitable since its fifth month of operation and has always been prudent with its spending.
The company has increased its compliance spending by 36% last year compared to 2022, aiming to build better relationships with global regulators.
This move is part of Teng’s strategy to transform Binance from a founder-led organization to one steered by a board of directors.
Addressing Past Mistakes
Teng acknowledged the past mistakes made by Binance and the heavy penalties the company has paid as a result. He stressed the importance of atoning for these errors and moving forward with a more transparent and regulated approach.
This includes finding a permanent headquarters for Binance, which has previously been vague about its location. Teng’s vision for Binance is not just about immediate success but about building a sustainable enterprise that will prosper for the next 50 to 100 years.
He believes that by focusing on compliance and transparency, Binance can achieve durable growth and maintain its position as a cornerstone of the crypto industry.
Binance Global Expansion And US Market
While Binance is focused on expanding globally, it has no plans to increase its presence in the U.S. market.
Teng noted that the regulatory environment in the U.S. poses significant challenges, and Binance will instead concentrate on other regions with better business prospects.
Under Richard Teng’s leadership, Binance is steering clear of an IPO and focusing on long-term sustainability, compliance, and global expansion.
By addressing past mistakes and building a more transparent organization, Binance aims to secure its future in the ever-evolving cryptocurrency landscape.