Interview with Binance CEO Richard Teng: Binance’s global ambitions, IPO, CZ

By Cheyenne Ligon, CoinDesk; Translated by Deng Tong, Golden Finance

Summary

• 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.

• Changpeng Zhao, who is currently serving a four-month prison sentence, is no longer involved in the company’s operations, but his partner He Yi remains, Teng said.

• 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 on exactly where its headquarters are — insisting vaguely at least once that it is an “international company” and consistently denying that it is a Chinese company — Teng is looking for a place for Binance to call home permanently.

The surge in cryptocurrency prices since the collapse of Binance competitor FTX in late 2022, coupled with the embrace of the space by traditional financial institutions 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 is not considering doing so.

“Our financial position is very strong, so there is really no need for us to think about any financing or IPO right now,” 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 has emerged.”

Teng said the exchange’s efforts to increase transparency — including a 36% increase in compliance spending last year from 2022 and an ongoing search for places to take root — are all aimed at building better relationships with global regulators, thereby guiding the company in a more future-oriented direction.

“It’s really about building a sustainable business that will not only be successful in the next few years, but continue to thrive for 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 over violations of 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, who was 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 be involved in the operations 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’s the exchange’s chief customer service officer. “She’s a very talented, very independent person.”

Global Ambitions

When asked if Binance had considered raising money to dilute Zhao’s ownership of the company, Teng said no, saying those issues should be decided by the exchange’s shareholders and board.

But Teng said Zhao’s felony status is not as big a regulatory challenge as outside observers might think.

“We do work closely with regulators around the world. In many parts of the world, that’s not an issue. There may be places where there are challenges, but we’ve worked through some of those issues,” Teng said, referring to the company’s recently-acquired licenses and settlements in countries including Dubai, India, Thailand and Brazil.

Teng stressed that Binance must come to terms with global regulators, make up for past missteps, and move forward with business in a more transparent and regulated manner.

“We acknowledge our past mistakes. We paid a heavy price for that,” Teng said. “Going forward, we are looking at how we can work with global regulators to continue to build a sustainable, robust platform.”

No Interest in the U.S.

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, our real focus is on markets outside of 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 a victory for Donald Trump will pave the way for a clearer, friendlier cryptocurrency regulatory regime, Teng said the election results won’t mean much to Binance anyway.

“Our business is outside the U.S.,” Teng said. “So we’re excitedly watching what’s happening in the U.S., but it has no impact on our business at all.”