Meeting Binance CEO Richard Teng

Yesterday, my coworker Cheyenne Ligon penned down the interview’s findings (with the title revealing that Binance, unlike many major cryptocurrency corporations, does not have plans for an initial public offering at this time). Here are additional insights and my own perspectives on the matter.

Teng Is Not CZ

In contrast to Changpeng Zhao (CZ), who was perceived as both the operational and spiritual leader of Binance, Teng takes a distinct approach to leadership. Instead of answering questions about technology and future strategies himself, Teng often directs these queries to other managers within the company. Teng emphasizes that Binance has evolved into a more decentralized organization since CZ’s time. In his words, “The organization today is quite different from what CZ led. It was a founder-led organization under CZ’s leadership, but now it’s a board-led organization.” Teng goes on to explain that the company now has three independent directors on its board and an experienced team of senior executives for day-to-day operations.

In his homeland Singapore and also in the United Arab Emirates, Teng held positions as a financial regulator. His appointment as CEO was due to his expertise in regulation and dealing with regulatory bodies. The task for Binance now is to persuade authorities that they can be relied upon regarding money laundering and other delicate matters. They are making significant investments in compliance. Given his calm, composed demeanor, Teng seems to be the ideal choice for the situation at hand.

No HQ yet

Changpeng Zhao (CZ) often stated that Binance was a “global company,” implying not just its worldwide operations but also its global identity, distinct from any particular nation. However, due to recent regulatory issues, Binance is now seeking a permanent base. Yet, Teng clarified that they have yet to decide on the specific location.

“We have not decided on the global headquarter issue. It is very important, it is very complex. We need to be quite thoughtful in understanding the impact on the various stakeholders,” he said. Regulation and taxation consequences seemed to be top-of-mind in those deliberations.

Teng explained that establishing a global headquarters was primarily intended to provide regulatory bodies with confidence regarding Binance’s structure, evolution, and future trajectory. This is comparable to having a board of directors.

Running a global crypto business is… complicated

U.S. cryptocurrency firms frequently voice concerns about the ambiguity of operating within the U.S due to a lack of specific laws and the sluggishness of regulatory bodies such as the SEC and CFTC in providing clear directives on what is and isn’t allowed regarding digital assets. It can be quite challenging to manage a global business when there are numerous regions shrouded in such uncertainty. For instance, Binance holds 19 licenses worldwide, with recent approvals in Thailand, India, and Brazil. Managing that much cultural and legal complexity can prove to be quite daunting.

As someone who has worked extensively with financial regulations and international business, I find the situation involving Tigran Gambaryan, the American employee of Binance currently detained in Nigeria, quite troubling. While it’s essential to enforce laws and protect national interests, accusations without evidence are concerning. The allegations against Gambaryan, such as money laundering and tax evasion, require solid proof to ensure justice is served fairly.

Teng shared with us that Tigran has been unfairly detained for nearly six months, and he urgently requires medical attention to prevent any long-term complications.

No IPO planned

In recent months, as the cryptocurrency market has developed following ETF approvals and Bitcoin halving, there were whispers that major crypto firms might choose to become publicly traded. However, while companies such as Circle are gearing up for this move, Binance appears content with its existing ownership setup, according to Teng’s statement.

As an analyst, I am pleased to report that our financial standing is robust, which means we are currently not exploring fundraising or Initial Public Offering (IPO) opportunities. Since the fifth month of Binance’s inception in 2017, it has consistently been profitable, and we have exercised great caution in our spending practices. Consequently, the topic of an IPO is not under active discussion at this time.

Is there a possibility that Binance may reconsider its decision to stay away from the U.S., given the potential shift in regulatory environment if Donald Trump wins the election? Teng, Binance’s representative, shared that they have no immediate plans to return. He stated, “Our operations are based outside of the U.S., so we closely monitor the developments there, but they don’t impact our business at all.” The U.S. remains a significant market for Binance, but it seems they are not in a hurry to resume operations due to the regulatory challenges faced in recent years. However, Teng still looks forward to visiting the U.S., allowing for discussions about Binance and the future of crypto.

Note: The views expressed in this column are those of the author and do not necessarily reflect those of CoinDesk, Inc. or its owners and affiliates.