Exclusive Interview with Binance CEO Richard Teng: No Plans for IPO, Focus No Longer on the U.S.

Binance CEO Richard Teng revealed in an interview with Coindesk that the company is not considering an IPO due to financial stability reasons. Instead, they are focusing on global expansion and enhancing compliance to build a sustainable cryptocurrency platform.

Compliance brings absolute advantage! What new value does the new CEO Richard Teng bring to Binance?

Richard Teng Takes Over as Binance CEO, Leading Binance's Compliance Transformation

In 2023, Zhao Changpeng (CZ) was sentenced to four months in prison for violating U.S. sanctions and anti-money laundering (AML) regulations. He resigned from his position as CEO and began serving his sentence in June of the same year.

Former Head of Regional Markets, Richard Teng, succeeded CZ as the CEO of Binance, shifting the company's focus towards global market expansion and enhancing compliance.

According to the ruling, CZ is no longer involved in Binance's operations or decision-making. When asked about the potential impact on the company structure, Teng responded that his partner, He Yi, remains in a key management role within Binance:

He Yi is involved in all aspects of the business, particularly overseeing Binance's human resources department. She is a very talented and independent thinker.

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Evidently, Teng is working towards transitioning Binance from a founder-led organization to one managed by the board of directors, to adapt to regulatory requirements in different regions worldwide. Despite Binance's historical avoidance of discussing its headquarters location, Teng claims to be actively seeking a suitable permanent location for the company.

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Talking about IPOs: Not on the Agenda

As traditional financial institutions continue to enter the cryptocurrency space through ETF products, there has been speculation about cryptocurrency companies, including large mining firms, considering initial public offerings (IPOs). Similar rumors have surfaced regarding Binance.

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When asked about Binance's potential IPO plans, Teng made it clear that the company's financial position is strong, and there are currently no plans for fundraising or an IPO:

Binance has been profitable since its fifth month of inception, and we have always maintained cautious spending, putting Binance in a favorable financial position. Therefore, an IPO is not within the current scope of the company's development direction.

Instead, Teng emphasized the focus on increasing transparency and compliance to lay the foundation for Binance's long-term growth:

This is not just for success in the coming years but to ensure Binance's continued prosperity and development over the next 50 to 100 years.

Global Expansion for Long-Term Development

Over the past two years, Binance has faced scrutiny in regulation due to its scale, with legal cases in the United States, Canada, the Philippines, and Nigeria.

In response to concerns that CZ's criminal status could hinder Binance's regulatory approval, Teng believes the situation is not as severe as imagined, emphasizing that good relationships with regulatory authorities worldwide are mitigating these issues:

We have resolved these issues in countries including Dubai, India, Thailand, and Brazil, obtaining relevant operational licenses and reaching settlements recently.

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Teng stressed that Binance is actively seeking redemption and anticipates operating in a more transparent and regulated manner in the future:

We acknowledge past mistakes and have paid a heavy price. Looking ahead, we will continue to build a robust platform.

Simultaneously, in an interview with Bloomberg yesterday, Teng revealed plans to expand hiring by at least 1,000 employees, with at least 20% dedicated to compliance operations.

No Plans to Enter the U.S. Market

Although the United States was once a significant market for Binance, Teng currently has no plans to expand business in the U.S., likely due to the country's unclear regulatory framework and the pending lawsuit against Binance.US.

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As the upcoming U.S. election approaches, the cryptocurrency industry and community eagerly anticipate a favorable regulatory environment for cryptocurrencies under a potential Trump victory. However, Teng does not hold high expectations:

Since our main operations are outside the U.S., we are excited to follow the developments in the U.S., but the impact on our business is minimal.