In a recent interview with Fortune Magazine, Richard Teng, Binance CEO has expressed confidence amid the challenges he inherits from his predecessor, Changpeng Zhao (CZ).
Appointed after CZ's departure following a $4 billion criminal settlement with the U.S. government, Teng faces the hefty task of transforming a company with a free-wheeling culture into a traditional financial enterprise. He acknowledges the "missteps" of Binance during its swift rise and admits the company's metamorphosis from a rebellious tech-startup to an ordinary financial institution is underway.
Addressing the company’s past regulatory issues including the accusatory pleas of money laundering and sanctions violations, Teng argues no client funds were mishandled as a result, emphasizing Binance's history of securing its platform assets.
Highlighting that he possesses complete trust from CZ, the leadership team, and staff, Teng is keen to lead Binance forward. A strong advocate for regulation, he envisions inducing globally harmonized rules for the crypto industry, akin to those present in the traditional banking sector.
Under Teng's administration, Binance is geared towards a more conventional corporate design with the induction of a board of directors and transparency regarding its finance. Despite the past claims of Binance lacking a headquarters, this latest decision suggests a critical pivot in the firm's structural identity.
While Teng has not given a precise timeline for the unveiling of the new board structure and financial disclosures, the CEO maintains that a "robust timeline" is in place.
In the wake of the U.S. Justice Department settlement, nearly $1 billion in client funds have exited Binance. However, Teng attributes these outflows to its recent enforced customer identification measures (KYC), making it the first non-U.S. crypto exchange to do so.
With the transition towards a regulated corporate structure and soaring crypto adoption rates, Teng firmly believes in Binance's strong position. He holds a positive outlook on the company's future, projecting a surge in the percentage of crypto owners from the present 5% to 20% worldwide.
