Binance's Early Compliance Concerns are Resolved," Assures New CEO Richard Teng
Summary:
Richard Teng, the new CEO of Binance, emphasizes that the compliance issues from the crypto exchange's early days are now resolved. He pledges to continue driving growth and work closely with global regulators. Teng also recalls costly historical mistakes due to initial compliance gaps during the company's rapid growth. However, he insists these issues are historical and the company has always prioritized user safety and security. The firm now faces ongoing costs and scrutiny from its record $4.3 billion settlement with the U.S. Justice Department. Under Teng's leadership, Binance will focus more on compliance and has strategic personnel to help navigate regulatory requirements.
Richard Teng, current CEO of Binance, has stated that the crypto exchange's initial compliance issues are now in the rearview. Teng, the ex-head of regional markets, assumed the CEO role on November 21, replacing Changpeng 'CZ' Zhao, who pleaded guilty to charges by the U.S. Department of Justice. Consequently, CZ is no longer directly involved in the company's operations. Unfazed by these recent changes, Teng, who stepped into the role barely two weeks after CZ exited, seems keen about leading the world's largest cryptocurrency exchange. "I am eager to drive our growth while maintaining open dialogue with global regulators," he said. He strongly believes that Binance's "clouded" phase, related to its unprecedented $4.3 billion settlement with the U.S. Justice Department over regulation and sanction offenses, is lifting. These hefty settlements stem from inadequate compliance during the platform's rapid expansion from around 2017. Teng noted that during those formative years, Binance dealt with compliance gaps leading to these costly errors, but insisted they were historical issues. Nonetheless, these compliance issues resulted in the largest crypto-related settlement in U.S. history. Teng emphasizes that the company has always prioritized user funds, safety, and security. The crypto exchange now faces the continuous cost and scrutiny from its U.S. settlement, including five years of monitoring and significant compliance undertakings for a "full U.S. exit." Teng did not comment about Binance.US's ongoing legal dispute with the U.S. SEC over alleged securities offenses. However, he stated that the company has calculated the costs associated with the settlement and SEC case. Some notable figures in the crypto industry have expressed concerns about the disparity between the treatment of Binance and mainstream financial firms. Weighing in on the issue, Teng referred to the many penalties paid by financial institutions. Looking ahead, Binance plans to focus on compliance and has brought onboard strategic personnel to help meet regulatory requirements. The platform currently has regional headquarters in UAE and France. Under Teng's leadership, who has rich experience in laying down crypto frameworks, Binance aims to continue its expansion.
Published At
12/3/2023 6:00:00 PM
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