Binance, the world's largest cryptocurrency exchange, has no plans to go public anytime soonâand it's not just because they're comfortably profitable. There's a lot happening behind the scenes that's keeping Binance away from the IPO spotlight.
In a recent interview, Binance's new CEO, Richard Teng, revealed his main objective: steering Binance toward a stable, enduring future without the burden of public market scrutiny. This marks a significant shift from the days when Changpeng âCZâ Zhao was at the helm.
CZ's departure wasn't voluntaryâit was part of a multi-billion-dollar settlement with the U.S. government that forced him to step down from the company he built. Now, Richard is transforming Binance from a founder-led operation to one governed by a board of directors, focusing on long-term stability over the quick gains of an IPO.
With traditional financial institutions diving into crypto, many speculated that Binance might join the IPO wave. But Richard quickly shut down those rumors, stating:
"đđ'đ«đ đąđ§ đ đŻđđ«đČ đŹđđ«đšđ§đ đđąđ§đđ§đđąđđ„ đ©đšđŹđąđđąđšđ§, đŹđš đđĄđđ«đ'đŹ đ§đš đ§đđđ đđšđ« đźđŹ đđš đđšđ§đŹđąđđđ« đđźđ§đđ«đđąđŹđąđ§đ đšđ« đđ§ đđđ đđ đđĄđąđŹ đđąđŠđ."
Since its early days, Binance has been profitable, according to Richard. The company has managed its finances prudently, and going public simply isn't part of the plan. Instead, Binance is doubling down on compliance, increasing its spending in this area by 36% last year compared to 2022.
CZ's exit came after Binance was hit with a $4.3 billion fine from U.S. regulators for sanctions violations and inadequate anti-money laundering (AML) measures. CZ even admitted to failing in these areas, which resulted in a four-month prison sentence. Richard clarified:
"đđŹ đ©đđ«đ đšđ đđĄđ đ.đ. đ«đđŹđšđ„đźđđąđšđ§, đđ đąđŹ đ§đš đ„đšđ§đ đđ« đąđ§đŻđšđ„đŻđđ đąđ§ đđĄđ đđšđŠđ©đđ§đČ'đŹ đšđ©đđ«đđđąđšđ§đŹ. đ đđšđ§'đ đŹđ©đđđ€ đđš đĄđąđŠ "
Despite CZ's departure, Binance co-founder Yi He remains deeply involved, overseeing HR and humorously calling herself the "chief customer service officer." Richard praised her as "highly talented and independent-minded."
When asked if Binance might raise funds to reduce CZ's ownership, Richard sidestepped the question, stating that such decisions rest with the shareholders and the board.
Even with CZ's legal troubles, Richard asserted that it hasn't been a significant hurdle in getting regulated globally:
"đđ đ°đšđ«đ€ đđ„đšđŹđđ„đČ đ°đąđđĄ đ đ„đšđđđ„ đ«đđ đźđ„đđđšđ«đŹ. đđ§ đŠđđ§đČ đ©đđ«đđŹ đšđ đđĄđ đ°đšđ«đ„đ, đąđ'đŹ đ§đšđ đđ§ đąđŹđŹđźđ. đđĄđđ«đ đŠđđČ đđ đđĄđđ„đ„đđ§đ đđŹ đąđ§ đŹđšđŠđ đđ«đđđŹ, đđźđ đ°đ'đŻđ đđ„đ«đđđđČ đ«đđŹđšđ„đŻđđ đŠđđ§đČ đšđ đđĄđđŠ."
Binance continues to secure licenses and make settlements in key markets like Dubai, India, Thailand, and Brazil. While Richard has his hands full, one thing is clear: Binance is staying private, profitable, and far from the grasp of U.S. markets.
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