Binance, the world's largest cryptocurrency exchange, has no plans to go public anytime soonโand 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 โCZโ Zhao was at the helm.
CZ's departure wasn't voluntaryโit 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:
"๐๐'๐ซ๐ ๐ข๐ง ๐ ๐ฏ๐๐ซ๐ฒ ๐ฌ๐ญ๐ซ๐จ๐ง๐ ๐๐ข๐ง๐๐ง๐๐ข๐๐ฅ ๐ฉ๐จ๐ฌ๐ข๐ญ๐ข๐จ๐ง, ๐ฌ๐จ ๐ญ๐ก๐๐ซ๐'๐ฌ ๐ง๐จ ๐ง๐๐๐ ๐๐จ๐ซ ๐ฎ๐ฌ ๐ญ๐จ ๐๐จ๐ง๐ฌ๐ข๐๐๐ซ ๐๐ฎ๐ง๐๐ซ๐๐ข๐ฌ๐ข๐ง๐ ๐จ๐ซ ๐๐ง ๐๐๐ ๐๐ญ ๐ญ๐ก๐ข๐ฌ ๐ญ๐ข๐ฆ๐."
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:
"๐๐ฌ ๐ฉ๐๐ซ๐ญ ๐จ๐ ๐ญ๐ก๐ ๐.๐. ๐ซ๐๐ฌ๐จ๐ฅ๐ฎ๐ญ๐ข๐จ๐ง, ๐๐ ๐ข๐ฌ ๐ง๐จ ๐ฅ๐จ๐ง๐ ๐๐ซ ๐ข๐ง๐ฏ๐จ๐ฅ๐ฏ๐๐ ๐ข๐ง ๐ญ๐ก๐ ๐๐จ๐ฆ๐ฉ๐๐ง๐ฒ'๐ฌ ๐จ๐ฉ๐๐ซ๐๐ญ๐ข๐จ๐ง๐ฌ. ๐ ๐๐จ๐ง'๐ญ ๐ฌ๐ฉ๐๐๐ค ๐ญ๐จ ๐ก๐ข๐ฆ "
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:
"๐๐ ๐ฐ๐จ๐ซ๐ค ๐๐ฅ๐จ๐ฌ๐๐ฅ๐ฒ ๐ฐ๐ข๐ญ๐ก ๐ ๐ฅ๐จ๐๐๐ฅ ๐ซ๐๐ ๐ฎ๐ฅ๐๐ญ๐จ๐ซ๐ฌ. ๐๐ง ๐ฆ๐๐ง๐ฒ ๐ฉ๐๐ซ๐ญ๐ฌ ๐จ๐ ๐ญ๐ก๐ ๐ฐ๐จ๐ซ๐ฅ๐, ๐ข๐ญ'๐ฌ ๐ง๐จ๐ญ ๐๐ง ๐ข๐ฌ๐ฌ๐ฎ๐. ๐๐ก๐๐ซ๐ ๐ฆ๐๐ฒ ๐๐ ๐๐ก๐๐ฅ๐ฅ๐๐ง๐ ๐๐ฌ ๐ข๐ง ๐ฌ๐จ๐ฆ๐ ๐๐ซ๐๐๐ฌ, ๐๐ฎ๐ญ ๐ฐ๐'๐ฏ๐ ๐๐ฅ๐ซ๐๐๐๐ฒ ๐ซ๐๐ฌ๐จ๐ฅ๐ฏ๐๐ ๐ฆ๐๐ง๐ฒ ๐จ๐ ๐ญ๐ก๐๐ฆ."
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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