As Binance battles a litany of legal charges, the newly appointed chief executive officer Richard Teng has responded to multiple questions concerning the compliance level of the world’s largest crypto exchange by daily trading volume.
After revisiting the shocking turn of events, the CEO admitted that the compliance measures levied by Binance were inadequate. Despite the mistakes of the previous leadership led by the outgoing CEO Changpeng “CZ” Zhao, Teng remains optimistic that the embattled crypto exchange will move past this challenging chapter.
Binance CEO Admits Mistakes Made By Previous Leadership
Addressing the Financial Times Crypto Winter Summit, Teng confessed that in the previous regime, the compliance measures were inadequate based on the exchange size. The CEO argued that for years, Binance has witnessed astonishing market size and customer base growth.
Depending on the exciting growth of the crypto exchange, the new CEO agreed that the compliance control measures failed to blend with the needs of Binance. Teng acknowledged that mistakes were made under the leadership of CZ.
Despite what went wrong in the previous regime, Teng admitted that Binance has moved past the mistakes and is working to fix some issues. Citing the $4.3 billion settlement with the US regulator, the CEO argued that the controversial crypto exchange has been aligning its business practices in conformance with the law.
The executive noted that the ever-changing nature of the crypto exchange has impacted the enforcement of more regulations. Comparing Zhao’s regime with the current changes in the crypto industry, Teng observed a big difference in policies and a shift in demand for crypto assets among institutional clients.
The CEO admitted that the multi-billion settlement was a significant outflow on the exchange. Despite withdrawing over $4 billion, the CEO was pleased to state that the exchange was silently regaining its financial position and has witnessed a significant flow of funds.
Impact of $4.3 Billion Settlement on Binance
The executive noted that the crypto exchange was instructed to leave the US market apart from the multi-billion settlement. With respect to the regulator’s orders, the Binance team plans to relocate its global headquarters outside the US.
Even though the crypto exchange has not disclosed where its global headquarters will be situated, Teng assured the community that the controversial crypto exchange will announce its preferred location in due course. Following the multiple legal charges facing Binance, the financial regulators planned to conduct an extensive audit to examine the firm’s compliance with the existing law.
Responding to the audit request, the Binance team referred to some of the provisions of establishing a private entity.They noted that publishing audit reports and other financial statements for the crypto exchange was inappropriate.
The Binance team confirmed that, in most cases, the crypto exchange seeks to operate as a regulated company and in conformance with the law. Elsewhere, the newly appointed CEO confessed that following the settlement of over $1 billion, the institutional clients VIP established a significant comeback to Binance.
Heightened Regulatory Scrutiny in the Crypto Industry
He stated that the Binance legal charges have exposed the entire crypto industry to extensive regulatory scrutiny. However with the current market condition, the CEO noted that Binance will collaborate with entities that focus on meeting the user’s needs and comply with the law. This new approach aims to build a sustainable crypto industry for next 60 years.
Lately, Mr. Teng has been in the limelight following the departure of CZ from the troubled crypto exchange. The unexpected resignation of CZ left many pondering “what will be the future of Binance.” Despite the shocking events, the new CEO remained optimistic that Binance was moving to a chapter regardless of the legal challenges.
He admitted that the litany of legal charges and leadership shake-ups strengthened Binance. The CEO reaffirmed that Binance was working to fix the compliance issue systematically.