New Binance CEO vows to transform the crypto exchange

Binance will implement a traditional corporate structure and begin disclosing information. Such plans were shared in an interview Fortune by its new CEO Richard Teng.

On November 21, Teng, who at the time was the head of regional markets replaced Changpeng Zhao (CZ) as chief executive.

On the same day, in the deal with the US Department of Justice, the exchange decided to pay $4.3 billion, and CZ agreed to step down as CEO and pay a $50 million fine.

The report noted that Teng will have to ensure Binance’s competitiveness amid pressure from US authorities. The latter implies monitoring that will be included in its operations under the deal.

The new CEO compared the platform, which is six years old, to a child preparing to start primary school. In his words, Binance is set to transform from an “unmanaged” tech startup into a conventional financial company.

The top executive acknowledged that the organisation made a number of “slip-ups” during its growth phase, but stressed that it has learned from them. According to him, the statements in the global settlement do not include allegations of misappropriating client funds. Teng pointed to years of experience in safeguarding users’ assets.

The new head of the exchange noted the trust in him from CZ, with whom they have been working since 2021, as well as the entire team. The knowledge he gained during his time with Abu Dhabi and Singapore regulators will help lead the company in the future, he added.

Teng answered affirmatively when asked whether Binance would adopt a traditional corporate structure under his leadership. The executive clarified that the latter entails a board of directors, a headquarters and financial transparency.

“We strive for transparency,” — he stressed.

Teng declined to give concrete timelines for the reforms, but described them as “firm.”

Journalists noted that the CEO will need to maintain Binance’s market positions. In the 24 hours following the deal with the US authorities, the total value of assets frozen on the exchange fell by $943 million.

Overall, against a backdrop of regulatory clashes, the platform’s market share declined for eight consecutive months. As of the end of October, it stood at 51.2%, according to 0xScope.

According to Teng, the outflow of funds was predictable, as Binance becomes, in his words, the first exchange outside the United States to introduce mandatory KYC-requirements.

The executive added that the company has resources to maintain competitiveness under new regulatory constraints and to pay one of the largest corporate fines in U.S. history.

“We start from a position of strength. The fundamentals of the business are extremely solid. Our capital structure is debt-free, costs are exemplary, and revenues and profits are stable,” — he explained.

A specialist predicted that Binance’s efforts to reposition into a regulated company will pay off in the long run.

Teng noted that this would allow the company to claim its share of the growing market pie amid rising interest from institutional investors.

In a special feature, ForkLog examined the experience of the new exchange chief and found out how former colleagues assess the platform’s prospects under his leadership.