According to Richard Teng, CEO of Binance, the biggest cryptocurrency exchange in the world, has resolved its cultural challenges following the settlement of criminal accusations from the US Department of Justice (DOJ), resulting in a $4.3 billion penalty.
In an interview with CNBC, Teng shared that Binance has progressed beyond its initial phase of growth when regulations were unclear, and the company needed to adapt to survive in the competitive market.
Binance Has Moved Past Cultural Issues
In November 2023, the Department of Justice announced charges against Binance for allegedly violating the Bank Secrecy Act and neglecting to establish an effective anti-money laundering system. Consequently, the exchange was suspected of facilitating illegal activities on its platform.
Changpeng Zhao, the founder of the cryptocurrency exchange Binance, decided to relinquish his role as CEO and was mandated to pay a fine amounting to $50 million. Simultaneously, Binance reached a settlement with regulatory authorities for a penalty worth $4.3 billion. Amidst this turmoil, Teng, who served as the head of Regional Markets, assumed the position of CEO.
At the Paris Blockchain Week crypto conference, Teng spoke with CNBC about Binance’s past approach, acknowledging the Justice Department’s criticism that the company had acted without seeking approval first. Now, Binance is focusing on sustainability and increased compliance efforts. (Or: In an interview with CNBC at the Paris Blockchain Week crypto conference, Teng admitted that Binance had taken a “ask for forgiveness rather than permission” approach in the past, according to the DOJ’s perspective. However, cultural concerns are no longer an issue for Binance, and the company is now prioritizing sustainability and enhanced compliance measures.)
During Binance’s initial growth, the company functioned in a specific way. However, as Binance has evolved and become more established, our focus has shifted towards sustainability. Our goal is to comply with regulations more strictly, which is why we are developing a strong compliance program. (Teng’s statement paraphrased)
Finding a Global Headquarter
As CZ (Changpeng Zhao) stands before sentencing on April 30th, Binance has taken its initial steps towards establishing a board of directors. This newly formed body includes both non-executive members and insiders, among whom is Teng. In explaining the choice to mainly invite insiders to join the new board, Binance’s CEO emphasized that this decision reflects their commitment to addressing the company’s requirements through a blend of internal and external perspectives.
Currently, Binance is continuing its hunt for a permanent headquarters, as shared by Teng. Yet, this decision comes with significant thought as the exchange aims to find a place with lenient regulations and an attractive lifestyle for its team members.
Read More
- CKB PREDICTION. CKB cryptocurrency
- PBX PREDICTION. PBX cryptocurrency
- EUR INR PREDICTION
- PENDLE PREDICTION. PENDLE cryptocurrency
- USD DKK PREDICTION
- ICP PREDICTION. ICP cryptocurrency
- GEAR PREDICTION. GEAR cryptocurrency
- USD VND PREDICTION
- CSIX PREDICTION. CSIX cryptocurrency
- IMX PREDICTION. IMX cryptocurrency
2024-04-09 20:30