Binance, the world’s largest cryptocurrency exchange, isn’t planning to go public anytime soon. And it isn’t because they’re sitting pretty on profits or don’t feel like it. There’s actually a lot more going on behind the scenes.
Richard Teng, who took over as CEO after Changpeng Zhao stepped down, made this clear in a recent interview. Richard’s main goal? Steer Binance into a stable, long-lasting future without the headache of public scrutiny.
Changpeng “CZ” Zhao
CZ’s exit was part of a multi-billion-dollar settlement with the U.S. government, forcing him to leave the company he built. Now, Richard is focused on transforming Binance from a founder-led company into one run by a board of directors.
With traditional financial institutions stepping into the crypto space and hopes that U.S. regulators might ease up, some people thought Binance might join the IPO frenzy. But Richard quickly shot down those rumors. According to him:
“We’re in very strong financial shape, so there’s really no need for us to consider any fundraising or an IPO at this time.”
Since the fifth month of Binance’s existence, it’s been profitable, Richard claims. The company’s been careful with its spending, and an IPO just isn’t on the table.
Instead of focusing on going public, the company is pouring money into compliance—36% more last year compared to 2022.
CZ had to step down after Binance got hit with a $4.3 billion fine from U.S. regulators for breaking sanctions and failing at anti-money laundering (AML) rules.
The Binance founder even admitted to not maintaining a proper AML and know-your-customer (KYC) regime, which got him a four-month prison sentence. But now, Richard said:
“As part of the U.S. resolution, CZ is not able to be involved in the operations of the company. I don’t speak to him.”
Even though CZ is out, Binance’s co-founder Yi He, is still heavily involved in the company. She’s in charge of Binance’s HR department and jokingly calls herself the chief customer service officer.
Richard made sure to add that Yi is “a highly talented, highly independent-minded person.” When asked if Binance had considered raising money to reduce CZ’s ownership, Richard dodged the question.
Yi He
He said that decision would be up to the shareholders and the board, not him. Despite CZ’s status as a felon, Richard said it hasn’t been as big of a problem for getting regulated as some might think.
“We do work closely with global regulators. In many places around the world, it’s not a problem. There could be areas where it may be a challenge, but we have already resolved some of those issues.”
The exchange has been busy securing licenses and making settlements in places like Dubai, India, Thailand, and Brazil. Richard’s got his work cut out for him, but for now, Binance is staying private, profitable, and far away from the U.S. markets.