Richard Teng Says Binance Has Changed Following Record-Breaking Compliance Settlement

Changpeng Zhao
Ad Disclosure
Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. However, this potential compensation never influences our analysis, opinions, or reviews. Our editorial content is created independently of our marketing partnerships, and our ratings are based solely on our established evaluation criteria. Read More
Last updated:
Ad Disclosure
Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. However, this potential compensation never influences our analysis, opinions, or reviews. Our editorial content is created independently of our marketing partnerships, and our ratings are based solely on our established evaluation criteria. Read More
Author
Trent Alan
Author Categories
About Author

Trent has a background and education in journalism and communications, with two decades of experience editing and writing on a diverse array of topics. In recent years, however, he has shifted his...

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews
Ad DisclosureWe believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. Read more
Richard Teng
Binance CEO Richard Teng says the company has fundamentally changed following a massive $4.3 billion settlement over compliance issues. Image by Koukichi Takahashi, Adobe Stock.

On Tuesday, new Binance CEO Richard Teng stated in an interview with Cointelegraph that Binance is now “totally different” from its early days.

Binance has undergone major changes in recent weeks following the record-breaking $4.3 billion settlement with U.S. authorities for compliance violations.

Teng took over as CEO of Binance on November 21, replacing founder Changpeng “CZ” Zhao. As part of a settlement with the U.S. Department of Justice, CZ pleaded guilty to charges and can no longer be involved in Binance’s day-to-day operations.

Speaking just two weeks after assuming the CEO role, Teng conveyed optimism about leading Binance through ongoing regulatory challenges.

“I’m taking the baton and pushing ahead with our growth agenda while working very closely with global regulators,” Teng stated.

$4.3 Billion Settlement Result of Early Compliance Gaps

According to Teng, mistakes made during Binance’s early years led to the massive settlement reached with U.S. authorities. He acknowledged that “in those very early days, while we were building up the company, there were gaps in terms of compliance.”

Binance grew exponentially after its founding in 2017, expanding from six people to thousands in just a couple of years. Teng admitted that the gaps in compliance during this period resulted in violations of regulations and sanctions programs.

Teng asserted that despite scrutiny by U.S. agencies, there has been “no allegation of any misappropriation of user funds.” He maintained that Binance always ensured the security of customer assets.

Ongoing Obligations Under Settlement With DOJ

As part of the $4.3 billion settlement, Binance faces a five-year monitorship and major continuing compliance requirements, including a mandated complete exit from the United States by the crypto exchange.

Teng declined to discuss specifics of Binance’s ongoing legal battle with the SEC. He stated that the costs of the DOJ settlement and SEC case have been factored in, however.

Binance is in the process of paying the $4.3 billion penalty, while CZ will personally cover a separate fine of $50 million.

Is Binance Being Singled Out?

BitMEX founder Arthur Hayes has suggested that Binance received unfair treatment compared to Wall Street institutions. Teng, on the other hand, acknowledged that large fines are not uncommon in the financial sector, totaling around $90 billion.

https://twitter.com/MuhdMuhdUsman3/status/1732054599555588362

But he avoided speculating on whether Binance was singled out. With operations in 18 jurisdictions, Teng claimed Binance may become the “most regulated exchange globally.”

Binance has established headquarters in the UAE to cover the MENA region, and in France for European operations. The UAE offers a crypto-friendly environment known to Teng from his previous role as a regulator there. The EU’s upcoming crypto regulations also provide optimism about expanding in Europe.

“You have clarity of rules to operate in 27 different jurisdictions,” Teng commented.

Richard Teng Stepping Into the Founder’s Shoes

Teng admitted he cannot directly replace Binance’s founder CZ, describing him as an inspirational leader focused on execution. But Teng believes his financial background can help steer Binance into a new era. Teng will report to a board of directors as the company transitions away from CZ’s influence.

“What I can do is bring my own values and expertise to the table in a maturing company,” Teng stated. “Six years ago, compared to now, Binance is totally different.”

In short, Binance, under the new leadership of CEO Richard Teng is attempting to turn the page and focus on compliance following a substantial settlement with U.S. authorities. With CZ’s exit and Teng’s entrance, Binance claims to be a changed company from its early days of explosive but rule-breaking growth. Despite ongoing legal battles, Teng conveyed optimism about working with regulators worldwide to reshape Binance’s future.

More Articles

Blockchain News
Swedish Payments Group Klarna Sets Sights on Crypto Ahead of Public Listing
Shalini Nagarajan
Shalini Nagarajan
2025-02-10 07:30:29
Finance News
Consumer Financial Protection Bureau Funding and Activities Suspended by New Head
Ruholamin Haqshanas
Ruholamin Haqshanas
2025-02-10 06:53:26
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors