New Binance CEO Sees No Need for IPO as He Plots 100-Year Strategy for Crypto Exchange

On the bright side, he found himself as CEO of a successful company within the crypto sector – a role he intends to expand and refine further.

For nearly nine months now, Teng – who previously worked as a regulator in Singapore and the United Arab Emirates – has been directing efforts towards restructuring Binance from a company primarily led by its founder, to one governed by a board of directors. Additionally, Binance, which has been secretive about its exact location, often referred to as an “international” entity, and denying allegations that it’s Chinese-based, is currently searching for a permanent headquarters under the leadership of Teng.

Since the fall of FTX at the end of 2022, which sparked a significant increase in cryptocurrency prices, along with traditional financial institutions getting involved in this area and optimism that U.S. regulators may become more lenient towards crypto, there’s been talk about a potential surge of initial public offerings (IPOs) in the near future.

However, during a comprehensive interview with CoinDesk reporters in New York on Wednesday, Teng stated that his firm, which is already 7 years old, has no plans to do so at the moment.

Teng stated that Binance has been financially sound since its fifth month of operation, which means we don’t have to think about fundraising or going public at this moment because we’ve been carefully managing our finances and are already profitable. In other words, an IPO is not something currently under consideration.

According to Teng, the exchange’s initiatives aimed at increasing transparency – such as investing 36% more on compliance activities last year compared to 2022, and continuously seeking a permanent location – are primarily focused on strengthening relationships with international regulators and ultimately guiding the company towards a more secure and sustainable future.

Teng stated, “Our goal is to establish an enterprise that not just thrives in the coming decades, but endures and prospers for a century or more.” That’s indeed our ambition.

CZ’s involvement

Teng took over as CEO following the resignation of CZ, who had been removed from his position as Binance CEO due to a $4.3 billion settlement with U.S. regulatory bodies for breaching sanctions and anti-money laundering (AML) laws. Previously, CZ admitted guilt for not maintaining a proper AML and know-your-customer (KYC) system and received a four-month prison sentence in June.

Changpeng Zhao (CZ), the prominent figure associated with Binance, is no longer involved in the company’s daily business activities or decision-making processes. This change occurred as he started serving a four-month imprisonment term in June.

According to Teng, due to the U.S. resolution, CZ cannot participate in the company’s day-to-day activities, and he (Teng) doesn’t communicate with him (CZ).

As a crypto investor, I can confirm that despite the media buzz, Binance co-founder Ye Hi, also known as CZ’s partner and mother of his three youngest kids, remains a vital figure in the leadership team at our beloved cryptocurrency exchange.

According to Teng, Ye plays a significant role in multiple facets of the business. Notably, she manages Binance’s Human Resources division and often humorously refers to herself as the head of customer service. Teng describes her as an incredibly skilled and self-reliant individual.

Global ambitions

If asked if Binance ever thought about getting more funding to possibly reduce CZ’s stake in the business, Teng politely declined, stating that such decisions should be made by the company’s shareholders and executive team.

However, Teng noted that CZ’s history as a convicted criminal may not have posed as significant an obstacle to obtaining regulation as some external observers might assume.

Teng stated that our company collaborates closely with international regulatory bodies. While there are places where this isn’t an issue, there might be certain areas where it poses a challenge. However, we have successfully addressed some of the problems related to licenses and settlements in countries such as Dubai, India, Thailand, and Brazil.

Teng emphasized that Binance should work on rebuilding trust with international regulatory bodies, making amends for previous mistakes, and conducting future operations in a more open, regulated fashion.

As a researcher, I confess that we’ve made mistakes in the past. We’ve undeniably faced significant consequences for those errors. However, our focus now is on constructing a lasting, resilient system, collaborating with international regulatory bodies to ensure our platform’s sustainability and robustness as we move forward.

No interest in the U.S.

One nation where Binance isn’t planning to broaden operations at this time is the United States, which imposed a significant fine on the platform towards the end of last year.

“At this point in time, what we’re really focusing on is markets outside of the U.S.,” Teng said.

Despite numerous individuals in the cryptocurrency sector eagerly awaiting the outcome of the upcoming U.S. presidential election, hoping that a Donald Trump victory might lead to a more defined and favorable regulatory environment, Teng stated that the election results hold no significance for Binance regardless of the result.

“Since our operations are based overseas, we keep a keen interest in American developments, but they hold no impact on our business at all.”

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