Author: Cheyenne Ligon, CoinDesk; Translated by: Deng Tong, Golden Finance
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Binance’s Richard Teng, who succeeded founder Changpeng Zhao as CEO, said in an interview that the cryptocurrency exchange is in good financial shape and is not considering going public.
Teng said Zhao Changpeng, who is currently serving a four-month prison sentence, is no longer involved in the company's operations, but his partner He Yi is still there.
Teng noted the need for atonement. "We acknowledge past mistakes. We paid a heavy price for that."
Richard Teng took over cryptocurrency giant Binance last year under less than ideal circumstances after his predecessor, Changpeng Zhao, was forced to exit the exchange as part of a multi-billion dollar settlement with the U.S. government.
In the nine months since taking the helm, Teng — who previously worked as a regulator in Singapore and the United Arab Emirates — has been working to transform Binance from a founder-led organization (as it was during Zhao’s tenure as CEO) to one led by a board of directors. While the company has remained mum about the exact location of its headquarters — vaguely insisting at least once that it is an “international company” and consistently denying that it is a Chinese company — Teng is looking for a permanent home for Binance.
A massive surge in cryptocurrency prices since the collapse of Binance rival FTX in late 2022, coupled with traditional financial institutions’ embrace of the space and hopes that U.S. regulators might soften their stance on cryptocurrencies, has fueled speculation about an impending wave of initial public offerings.
But in a wide-ranging interview with reporters in New York on Wednesday, Teng said the company was not considering doing so.
“We are in a very strong financial position, so right now there is really no need for us to think about any funding or IPO,” Teng said. “Binance has been profitable since its fifth month of operation and has been very cautious in spending. So [IPO] is not a topic that comes up.”
Teng said the exchange’s efforts to increase transparency — including a 36% increase in spending on compliance last year compared with 2022 and an ongoing search for places to put down roots — are all aimed at building better relationships with global regulators, thereby steering the company in a more future-oriented direction.
“It’s really about building a sustainable business that not only succeeds in the next few years, but continues to thrive in the next 50 to 100 years,” Teng said. “That’s certainly our aspiration.”
Changpeng Zhao’s involvement
Teng was appointed CEO by Changpeng Zhao, who resigned as Binance CEO as part of the company’s $4.3 billion settlement with U.S. regulators for violating sanctions and anti-money laundering (AML) laws. Zhao also pleaded guilty to failing to maintain adequate AML and know-your-customer (KYC) systems and was sentenced to four months in federal prison in June.
But Zhao Changpeng, once the public face of Binance, is no longer involved in the company’s day-to-day operations or decision-making. (He began serving a four-month prison sentence in June.)
“As part of the U.S. resolution, Changpeng Zhao cannot participate in the operation of the company,” Teng said.
However, Teng said Binance co-founder He Yi remains a “key component” of the cryptocurrency exchange’s management team.
“He Yi is involved in every aspect of the business,” Teng said, adding that she runs Binance’s human resources department and likes to joke that she is the exchange’s chief customer service officer. “She is a very talented, very independent person.”
Global ambitions
When asked whether Binance had considered raising funds to dilute Zhao’s ownership of the company, Teng declined, saying those issues should be decided by the exchange’s shareholders and board of directors.
But Teng said Zhao’s status as a felon was not as big a challenge to regulation as outside observers imagined.
“We do work closely with regulators around the world. In many parts of the world, this is not an issue. There may be places where there are challenges, but we have resolved some of those issues,” Teng said, referring to the company’s recently obtained licenses and settlements in countries including Dubai, India, Thailand and Brazil.
Teng stressed that Binance must reach an agreement with global regulators, make up for past mistakes, and advance its business in a more transparent and regulated manner.
“We acknowledge our past mistakes. We have paid a heavy price for this,” Teng said. “Looking forward, we are looking at how we can work with global regulators to continue to build a sustainable and robust platform.”
Not interested in the United States
One country Binance is not currently interested in is the United States, which slapped a hefty fine on the exchange late last year.
"Right now, we're really focusing on markets outside the U.S.," Teng said.
While many in the cryptocurrency industry are eagerly awaiting the results of the upcoming U.S. presidential election, hoping that Donald Trump’s victory will pave the way for clearer and more friendly cryptocurrency regulations, Teng said the election results will mean little to Binance anyway.
“Our business is outside the U.S.,” Teng said. “So we are watching what’s happening in the U.S. with great excitement, but it has no impact on our business at all.”
