Richard Teng, CEO of the world’s largest cryptocurrency exchange, Binance, believes the trading giant is past the cultural issues after it settled criminal charges from the United States Department of Justice (DOJ) with a $4.3 billion fine.
During an interview with CNBC, Teng said Binance had moved past the early stage of its development, where there were no clear rules, and it had to operate in a certain way to stay relevant.
Binance Has Moved Past Cultural Issues
In November 2023, the DOJ unsealed a criminal indictment against Binance, accusing the firm of willfully floundering the Bank Secrecy Act and failing to implement a strong anti-money laundering program to prevent the platform from becoming a hub of illicit activities.
The exchange’s founder, Changpeng Zhao, agreed to step down as CEO and was ordered to pay a penalty of $50 million, while Binance settled its charges with a $4.3 billion fine. During the fiasco, Teng, who was the global head of Regional Markets at the time, replaced Zhao as chief executive.
Speaking to CNBC at the Paris Blockchain Week crypto conference, Teng acknowledged the DOJ’s arguments that Binance had adopted a “better to ask for forgiveness than permission” approach. Having moved past cultural issues, the Binance chief said the firm is now looking at sustainability and more compliance.
“In those very early stages of development, Binance was operating in a certain fashion. But we have moved past that as the company moves into greater maturity. We are looking at sustainability; the direction of travel is very clear towards much more compliance, which is why we’re building up a very robust compliance program,” Teng stated.
Finding a Global Headquarter
While CZ awaits sentencing on April 30, Binance has created its first board of directors, comprising non-executive members and insiders, including Teng. The Binance CEO said the company’s decision to appoint mostly insiders to the new board is part of its efforts to address corporate needs with a mix of internal and external inputs.
Meanwhile, Binance is still in search of a global headquarters, according to Teng. However, the process requires a lot of consideration as the exchange seeks a location with a favorable regulatory framework and good living conditions for its employees.
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