x
Binance’s chief executive has shared his company’s future direction and areas of focus following its settlement with U.S. authorities, including the Department of Justice (DOJ). “We have moved past that as the company move into greater maturity,” he insisted, adding that the crypto firm is focusing on “sustainability.”
Binance’s new CEO, Richard Teng, outlined his company’s plans going forward in a CNBC interview on Tuesday following the crypto exchange’s settlement with U.S. authorities, including the Department of Justice (DOJ).
Addressing concerns about the company’s past practices, Teng claimed that the allegations against Binance relate to activities in a “very early stage” of Binance’s development “where rules are nascent” and “there’s no clarity.” He emphasized:
But we have moved past that as the company move into greater maturity … We are looking at sustainability; the direction of travel is very clear towards much more compliance, which is why we’re building up a very robust compliance program.
In November last year, Binance settled a long-running investigation with U.S. authorities. The crypto exchange agreed to pay $4.3 billion, including a $2.5 billion forfeiture and a $1.8 billion fine. Former CEO Changpeng Zhao (CZ) stepped down after facing charges related to the Bank Secrecy Act. His sentencing is pending. U.S. officials also accused Binance of facilitating transactions that violated U.S. sanctions.
Recently, Binance established its first board of directors, which raised eyebrows due to the inclusion of mostly company insiders alongside a few non-executive members. Teng defended the decision, emphasizing the need for a board with a deep understanding of Binance’s unique business model. “It’s a good mix of internal inputs, as well as external [ones], on how to bring this company forward as corporate stewards,” the CEO claimed.
In addition, Binance remains undecided on the location of its official global headquarters. Teng has confirmed that the crypto exchange is considering a few options, but he pointed out that choosing the right place is a “very deliberate process.”
Noting that choosing the right location is “not an easy decision,” the chief executive stressed that the company needs to find a jurisdiction that “has the regulatory framework to cater to the breadth and depth” of its products, that can cater to its users, and “whether we can base more people there as part of our corporate headquarters.” Paris was previously mentioned as a possible global headquarters location.
The Binance CEO concluded:
There are various considerations at play that we need to look at seriously, and we’re going through a very deliberate process … We’re going to see a corporate headquarters like we see for other corporate institution and that’s the journey we have to go on.
