[TOKEN2049] Richard Teng on leading Binance through a new era

Few leaders have confronted a extra pivotal profession transition than Binance‘s Richard Teng.

Teng, a former regulator, has been on the helm of the corporate for the previous 10 months after being appointed straight by the co-founder and former CEO of the crypto alternate, Changpeng Zhao (CZ).

His management comes at a crucial juncture for the corporate, navigating regulatory scrutiny and public scepticism following CZ’s departure—although he by no means did think about himself leading Binance, given his background.

But, his perception within the transformative potential of blockchain expertise in the end drew him into the business. Teng first joined Binance in 2021 because the CEO of its Singapore enterprise earlier than turning into the agency’s world Head of Regional Markets.

Now, as CEO, he’s tasked with reinforcing the corporate’s transparency and safety. Talking on the TOKEN2049 convention in Singapore final week, the CEO shared how the organisation has developed since CZ’s departure and his predictions of the business’s future.

“We have to continue to change”

Drawing a comparability to the business’s present state, Teng famous that the crypto panorama has undergone vital adjustments since CZ first took the helm at Binance.

When CZ was leading the corporate, it was basically a founder, CEO-led firm. If you happen to keep in mind, Binance began in July 2017—it was a fairly younger firm, and on the time, guidelines and rules [surrounding the crypto industry] nonetheless haven’t been developed. 

Richard Teng, CEO of Binance

Right this moment, roughly one-third of worldwide regulators are beginning to oversee the crypto business. Compliance and regulatory measures have change into rather more stringent than in Binance’s early days—a panorama by which “CZ has not operated in”.

“We have to continue to change with the changing landscape,” stated Teng. The corporate has since shifted to a board-led governance mannequin with a seven-person board of administrators to fulfill regulatory expectations.

In response to the CEO, this transfer aligns Binance’s construction extra carefully with what “regulators are used to”. It additionally offers the alternate with a extra secure management framework because it navigates the worldwide regulatory panorama.

They invested US$213 million into compliance programmes in 2023

Since its pivot, Binance has seen a 40 per cent improve in institutional and company buyers becoming a member of the platform in 2024 alone. It has additionally secured 19 licences worldwide, with its most up-to-date approvals in Thailand, Brazil, and India.

Nonetheless, it’s not as straightforward because it appears for the alternate. Although there was some regulatory readability within the crypto panorama, there’s no denying that it’s nonetheless in its nascent levels—there may be nonetheless a urgent want for extra outlined rules.

Take the licensing processes, for example. Securing the 19 approvals has confirmed to be a vital problem for the corporate, notably given the various compliance necessities throughout completely different international locations.

Each jurisdiction has its personal guidelines and rules. Some jurisdictions outline crypto as a safety, whereas some have completely completely different views. In Singapore, [for instance], crypto is taken into account to be a digital cost toolkit. In every of those locations, the views and rules are so completely different, [so] it’s a must to actually perceive what the provisions are and tips on how to adjust to them.

Richard Teng, CEO of Binance

Because of this the corporate has began investing closely in compliance programmes, particularly over the past yr. In 2023, Binance spent about US$213 million on compliance packages—roughly 35 per cent increased than its spending in 2022—and plans to keep up substantial investments on this space shifting ahead.

Earlier than the tip of the yr, it’s trying to rent at the least 170 extra workers for compliance groups, with plans to construct a 700-strong compliance workforce by the tip of 2024.

Teng can be actively in search of a everlasting headquarters for Binance as a part of its broader efforts to strengthen its relationship with world regulators and guarantee its long-term sustainability.

“2025 is going to be much bigger”

When requested in regards to the present state of the crypto business, Teng stated that 2024 has been a landmark yr for crypto adoption, pushed by a surge of institutional curiosity.

In January, the US authorised the primary exchange-traded funds (ETFs) for spot costs of bitcoin, adopted by the approval of comparable funds for ether in July.

In the meantime, establishments that had been as soon as cautious, like BlackRock, at the moment are moving into the crypto enviornment— its as soon as sceptic CEO, Larry Fink, is now a “major believer” of cryptocurrencies, even going on to name it “digital gold.”

Teng shared that this rising institutional curiosity is crucial to driving mainstream adoption, attributing Bitcoin’s file excessive earlier this yr—which soared above US$70,000 in March—to “the effect of institutions coming through”.

Though he acknowledges that world cryptocurrency possession solely hovers between 5 to 7 per cent of the inhabitants, he stays bullish about the way forward for cryptocurrency.

“In any sector where youth and young adults are embracing, that’s going to be the industry of the future,” stated Teng. “The speed at which people are embracing digital assets is truly remarkable.”

We’ve got 225 million customers. It took us 5 years to get our first 100 million customers, and the second 100 million customers took us two years. The third? Even sooner.

Richard Teng, CEO of Binance

Trying ahead, Teng believes that “2025 is going to be much bigger than 2024”, citing decrease rates of interest within the US and crypto’s place within the present market cycle. “Regardless of the market, we are bullish, and we will continue to build the best platform out there,” Teng stated.

Discover out extra about Binance right here.
Learn different articles we’ve written about cryptocurrencies right here.

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