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Token2049: CEO Richard Teng Gears Up for a More Regulated, Resilient Binance Post-CZ

Photo for the Article - Token2049: CEO Richard Teng Gears Up for a More Regulated, Resilient Binance Post-CZ

Richard Teng the CEO of Binance, joined Decentralized AI Society Chair Michael Casey to discuss Binanceโ€™s plans and current situation. 

  • The interview happened at the Token2049 Singapore, a global web3 event series, where decision-makers in the global crypto ecosystem connect to exchange ideas, network, and shape the industry.
  • Find more interviews and Token2049 articles here.
Photo for the Article - Token2049: CEO Richard Teng Gears Up for a More Regulated, Resilient Binance Post-CZ

In Focus: Teng became the CEO of Binance in 2023 after Binance Founder Changpeng Zhao, mostly known as CZ, stepped down from the position due to the regulatory scrutinies experienced by the company.

  • Recent news: On September 27, 2024, Zhao was released from U.S. custody after serving his four-month sentence after a case proved Binance had failed to stop widespread criminal activity on the crypto exchange. However, it should be noted that the Binance website is banned in the Philippine internet space for operating in the country without proper licenses while the regulators said that they are now working on banning the exchangeโ€™s mobile app.ย 

The following interview focuses on Tengโ€™s response to how Binance has been operating after Zhao left the highest position, how is the crypto exchangeโ€™s relationship with other regulations, and how they balance following regulations while pushing for innovation.ย 


Interview with Richard Teng of Binance

Photo for the Article - Token2049: CEO Richard Teng Gears Up for a More Regulated, Resilient Binance Post-CZ

Michael Casey, Chair, Decentralized AI Society: Hi, I’m Michael Casey. Many of you may know me from my time as the chief content officer at Coindesk and chairman of Consensus. As Raj announced, I’m now the chair of the Decentralized AI Society, which we literally launched todayโ€”very excited about it. 

But I’m not here to talk about that. I’m here to talk about you, Richard. You have one of the most interesting positions as a CEO, where your founder is in jail, and he’ll be out in less than two weeks. So, what’s it been like handling the responsibility to steer the company during this period? What mindset have you brought to the task, given CZโ€™s situation? (Editor’s note: At the time of publishing, former Binance CEO Changpeng “CZ” Zhao has been released from jail.)

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Richard Teng, Chief Executive Officer, Binance: It’s both a privilege and an honor to be approached by CZ and the rest of the founders to lead this very important enterprise. We have a fantastic management team, dedicated staff, and a committed global community. We serve 225 million users worldwide, and we have the largest web3 ecosystem globally.ย 

When CZ was leading, it was a founder-CEO-led company, and the landscape was quite different then. Now, in 2024, weโ€™re seeing greater regulatory certainty, with about one-third of global regulators starting to regulate the space. Institutional adoption is also growing, with the ETF approvals in the U.S. and other countries like Canada, Australia, and Brazil.

When the largest asset manager in the world, Larry Fink, goes from being a skeptic to a believer, thatโ€™s a transformational shift. So, as a company, we continue to evolve. We have over 5,300 staff and plan to add at least 1,000 more by the end of the year. This reflects our confidence in the sector.

On Binanceโ€™s Licenses From Different Regulators

Photo for the Article - Token2049: CEO Richard Teng Gears Up for a More Regulated, Resilient Binance Post-CZ

Casey: A lot of the new staff you’re bringing on are in compliance, right? How many licenses do you hold globally now?

Teng: Weโ€™re happy to announce recent regulatory approvals in India and Indonesia, making us the most regulated exchange globally with 19 approvals. Each jurisdiction has different compliance needs, so we’ve had to build an “army” of staff to manage these challenges. Weโ€™ve spent significant sums on complianceโ€”$158 million in 2020, $213 million in 2021, and even more this year. We currently have 530 compliance staff and will add another 160โ€“170 before the end of the year.

We continue to recruit globally to ensure we comply with the vastly different regulations across jurisdictions. Some define crypto as a security, others as a commodity, and some as digital payment tokens, like in Singapore. This creates complexities that are unique compared to traditional banking or securities, where regulations are more standardized globally.

On How CZโ€™s Arrest Affected Binance

Photo for the Article - Token2049: CEO Richard Teng Gears Up for a More Regulated, Resilient Binance Post-CZ

Casey: How has CZ’s experienceโ€”pleading guilty, paying fines, and serving a jail sentenceโ€”affected how you approach compliance?

Teng: We take it very seriously. Binance paid a heavy penalty, but whatโ€™s more important are the lessons learned. The rules were unclear when Binance started in 2017, but today, weโ€™re in a much more regulated environment. My background as a regulator has helped, and I’ve been a part of the crypto space since 2017, investing in it myself. 

For crypto to go mainstream, you need clear regulations so that users feel protected and institutions can adopt the technology. We’ve invested heavily in compliance to navigate this journey and ensure weโ€™re much better positioned now.

We’ve always been a user-first platform, and our users have stuck with us for the past seven years. Weโ€™ve introduced initiatives like the SAFU Fund to ensure users are protected in the event of security breaches, with over $1 billion available for compensation. We also help users avoid potential losses, having saved them from $2.4 billion worth of scams this year alone.

On Binance Balancing New Innovations with Regulatory Compliance

Casey: But compliance is costly, which can be a barrier for smaller players in the space. How do you balance the need for compliance with fostering innovation, especially when youโ€™re responsible for listing tokens from startups that are part of that ecosystem?

Teng: Weโ€™ve always been strict about listings. We have a set of criteria that our listing team adheres to, ensuring they conduct due diligence free from external influence. We look at factors like the founders’ background, utility, community engagement, security, and compliance before listing any project. But not all projects are suitable for listing at this stage.

We want to support innovation, so we monitor developments in all crypto subsectors like DeFi, GameFi, and SocialFi. For those projects we do list, the journey doesnโ€™t end there. We ensure they continue to meet their obligations to users, and we delist those that donโ€™t.

On Tengโ€™s Vision About the Future of Crypto?

Photo for the Article - Token2049: CEO Richard Teng Gears Up for a More Regulated, Resilient Binance Post-CZ

Casey: Looking at the broader landscape, what do you see in the future for the crypto industry?

Teng: My personal belief, not financial advice, is that 2025 will be a bigger year than 2024. Weโ€™re looking at possible rate cuts from the U.S., and historically, crypto follows a four-year cycle that begins 160 days after the Bitcoin halving. 

Based on that timeline, weโ€™re approaching a point where things should pick up. Regardless of market fluctuations, weโ€™re bullish on this sector and continue to build the best platform for users globally, while working with regulatory agencies to support crypto adoption. Blockchain and AI will form the foundation of many industries going forwardโ€”whether itโ€™s supply chain, financial services, or real estate. Governments recognize this and are eager to develop these technologies.

On Binanceโ€™s Presence in India and Indonesia

Token2049: Binance CEO Richard Teng on the future of crypto in developing nations

Casey: Iโ€™m glad you mentioned decentralized AI, but weโ€™ll have to wrap up soon. You’ve announced licenses in India and Indonesia, both huge developing markets. What role do you see these nations playing in the future of crypto?

Teng: Data shows that crypto adoption is fastest in places with lower financial inclusion and younger populations. India, for example, tops the global crypto adoption index. In regions where access to banking is limited, crypto becomes the alternativeโ€”operating 24/7 and transmitting funds at a fraction of traditional financial costs. Younger demographics, being more tech-savvy, are also driving this adoption, with many young adults holding more crypto than stocks. These are the regions where the future of crypto lies.

Closing

Casey: Itโ€™s been great to hear about the work youโ€™re doing to advance financial inclusion in developing markets. Thatโ€™s all we have time for now. A big round of applause for Richard Teng from Binance!

Teng: Thanks, everyone.


Watch the interview clip above and keep reading BitPinas for interviews with the people who move the crypto industry in the Philippines forward.

This article is published on BitPinas: Interview: CEO Richard Teng Gears Up for a More Regulated, Resilient Binance Post-CZ

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