According to Richard Teng, as part of the settlement, CZ will not be involved in the day-to-day operations of the company. However, the new CEO seems confident and enthusiastic about the challenges ahead, taking over from CZ. In an interview with Cointelegraph, Teng expressed his determination to work closely with global regulators to drive the growth agenda of the world’s largest cryptocurrency exchange.
“I’m taking the baton and pushing ahead with our growth agenda while working very closely with global regulators.”
Teng believes that Binance’s recent $4.3 billion settlement with the United States Justice Department has lifted the “overcast” conditions that were clouding the exchange. The settlement was related to violations of U.S. regulations and sanctions programs, attributed to early compliance gaps during Binance’s rapid growth from 2017 onwards.
$4.3B settlement a result of early gaps in compliance
Teng explained that Binance’s early compliance gaps led to historical issues and mistakes, resulting in the substantial settlement. However, he emphasized that user funds, security, and safety have always remained a priority for the company, with no allegations of misappropriation of user funds.
Binance’s obligations to U.S. authorities
Following the settlement, Binance is now subject to a five-year monitorship and significant compliance undertakings to ensure their complete exit from the United States. The company is also facing a legal battle with the U.S. Securities and Exchange Commission (SEC) over alleged securities violations.
The settlement details and means of payment are under non-disclosure agreements, but Binance is committed to meeting the settlement requirements.
Was Binance treated unfairly?
Teng addressed the perception of unfair treatment in comparison to mainstream finance firms, highlighting Binance’s commitment to become the most regulated exchange globally. The company has invested heavily in compliance and has brought in strategic talent with backgrounds in regulatory agencies and traditional financial institutions.
Building out of UAE, France
Binance has established regional headquarters in the United Arab Emirates (UAE) and France, with a focus on clarity of rules and fostering institutional adoption. Teng sees the UAE as a promising hub for the cryptocurrency and blockchain sector, and views the implementation of Europe’s Markets in Crypto-Assets regulations as an opportunity for expansion.
Stepping into CZ’s shoes
Teng acknowledges the challenge of stepping into CZ’s shoes as the new CEO of Binance, noting the company’s significant evolution in recent years. He emphasizes the importance of bringing his own values and expertise to the table as the company continues to grow and adapt.
Outside of his professional role, Teng enjoys exercising and reading, citing Elon Musk’s biography as his recent read.
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