Binance’s Future Strategy Unveiled by New CEO Post CZ’s Departure

In his inaugural blog post since succeeding Changpeng Zhao, newly appointed Binance CEO Richard Teng shared his vision, emphasising a strong commitment to regulatory cooperation within the crypto exchange.

Last week, Zhao admitted guilt in a Seattle court for violating the U.S. Bank Secrecy Act, agreeing to a $50 million fine and stepping down as CEO as part of his plea arrangement.

The U.S. Department of Justice resolved the associated criminal investigation with Binance, involving alleged money laundering, fraud, and sanctions breaches. Binance is set to pay a historic $4.3 billion fine, marking one of the largest corporate settlements in U.S. history.

We did an article on that here. 

Teng, previously Binance’s Global Head of Regional Markets, brings significant regulatory expertise, having served as CEO of the Financial Services Regulatory Authority at Abu Dhabi Global Market, chief regulatory officer at SGX, and spending 13 years at the Monetary Authority of Singapore.

“I am eager to jump headfirst into my new role and know there will be many more opportunities for me to share my thoughts with the community through blogs like this one, through my social media accounts — Twitter, LinkedIn — and through the many industry conferences and events around the world,” stated Teng.

Here is my first blog as #Binance CEO.

I want to take this opportunity to share immediate focus areas, discuss our responsibility to users and my view on the future of our industry.https://t.co/c6QMS6Ulmm

— Richard Teng (@_RichardTeng) November 27, 2023

You can read the full blog here.

In his blog post, Teng emphasised Binance’s dedication to providing value and advancing its product offerings. He highlighted the company’s robust foundation as the leading global cryptocurrency exchange by volume, assuring users of its financial strength, security, and reliability.

While mentioning Binance’s proof of reserves and asset backing, Teng faced criticism for not disclosing audited fiat reserves and other crucial financial information. In an interview with Fortune, he hinted at a forthcoming plan but refrained from providing specifics.

Addressing past compliance challenges, Teng conveyed Binance’s proactive approach by restructuring its compliance program and culture, marking a shift from historical difficulties.

By prioritising collaboration with policymakers and engaging with fellow leaders in the crypto sphere, Teng highlighted that Binance can “contribute to the development of a globally harmonised regulatory framework that will foster innovation while providing critical consumer protections.”

Apart from overseeing the centralised Binance exchange, Teng expressed his aim to promote the embrace of web3 and decentralised applications.

“As we usher in the next phase of Binance’s responsible growth, I am excited for the opportunity to engage in a meaningful conversation with global policymakers, to ensure crypto investors remain confident in the industry’s future and to engage and educate the next billion users so that we may work to ensure the long-term sustainability of crypto,” Teng stated.

Teng assumed the role of CEO at the prominent crypto exchange following Zhao’s agreement to step down, part of a settlement with the U.S. Department of Justice revealed on Nov. 21. CZ admitted guilt to a felony charge, fined $150 million, while the exchange faces penalties of approximately $4.3 billion.

Authorities seek to limit Zhao’s travel; typically based in the UAE with family in Dubai.

The former Binance CEO may encounter a maximum 18-month prison term post his February 2024 sentencing.