Cryptocurrency exchange Binance is in a stable financial position and therefore does not consider an IPO. This was stated by the platform’s CEO Richard Teng in an interview with CoinDesk.
“From the fifth month of operation, Binance became profitable, being very prudent in terms of expenses. So the topic [of an IPO] is not currently being discussed,” he noted.
During his nine months at the helm, Teng has focused on transforming the exchange into a board-managed organization. Among the immediate goals is the selection of a jurisdiction for establishing a headquarters.
The exchange’s efforts are directed towards enhancing transparency, including improving relations with global regulators and increasing compliance spending by 36% in 2023 compared to 2022.
“It’s about creating a sustainable enterprise that will not only be successful in the coming years but will continue to thrive over the next 50-100 years,” added Teng.
According to him, the former head of Binance, Changpeng Zhao (CZ), who is serving a four-month prison sentence, is not currently involved in the company’s daily operations or decision-making. Meanwhile, his partner and co-founder of the exchange, Yi He, remains “an essential part” of the management team.
“Yi is involved in various aspects of the business. She is a very talented and very independent person,” Teng said.
He also mentioned that the company has not considered raising funds for a potential dilution of CZ’s stake. The criminal status of the former CEO poses less of a regulatory challenge than outside observers might think.
“We work closely with global regulatory bodies. In many places around the world, it’s not an issue. Where it could be a problem, we have partially addressed it,” Teng noted, referring to licenses and permits in Thailand, Dubai, India, and Brazil.
The only country where Binance is currently not interested in expanding is the United States, which imposed a $4.3 billion fine on the exchange last November.
According to Bloomberg, the trading platform plans to hire 1,000 people in 2024. Most of the new employees will be directed to the compliance team, increasing the staff from the current 500 to 700 people. Additionally, Binance will spend over $200 million on regulatory compliance.
Teng reported that the exchange is receiving more requests from law enforcement agencies worldwide — 63,000 this year compared to 58,000 in 2023.
Furthermore, the company is still facing a separate lawsuit from the SEC for allegedly selling securities without proper registration.
According to Teng, observers appointed by U.S. agencies — Forensic Risk Alliance and Sullivan & Cromwell — have already begun assessing the exchange’s financial statements and monitoring transactions.
In August, three crypto investors filed a lawsuit in federal court in Seattle against Binance and its founder Changpeng Zhao. They claim they were unable to recover stolen assets because the exchange failed to prevent money laundering.