In an interview with Cointelegraph, Binance's new CEO discussed the future of the world's largest crypto exchange after a landmark $4.3 billion settlement with US authorities.

Binance CEO Richard Teng confirmed that the “gap in compliance” from Binance's early days is definitely in the past, but the crypto exchange is now "completely different."

Teng, Binance's former head of regional markets, was promoted to CEO on November 21 when Changpeng 'CZ' Zhao resigned after pleading guilty to charges brought against him by the US Department of Justice.

“As part of the settlement, CZ cannot be involved in the day-to-day running of the company’s operations,” Teng explained.

However, Binance's recent CEO remains a man upbeat about the challenges ahead. In an interview with Cointelegraph just two weeks after taking over from founder CEO Changpeng 'CZ' Zhao, Teng seemed to relish being at the helm of the world's largest cryptocurrency exchange:

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

Teng believes Binance's cloudiness in recent months will clear after its staggering $4.3 billion settlement with the US Department of Justice related to violations of US laws and sanctions programs.

$4.3B settlement as a result of early gaps in agreement

“In those very early days while we were building up the company, there were gaps in terms of compliance. That resulted in all these breaches and mistakes, but these are historical issues."

The exchange has paid the price for mistakes made during its rapid growth since 2017. Teng recalls how Zhao built Binance from a team of six people into a global operation with thousands of employees that currently has more than 166 million users.

Flaws in its early compliance regime led to the largest crypto-related settlement in US history. However, Teng claimed that the company has always ensured the sacred responsibility of protecting and securing its users' funds.

“U.S. agencies have scrutinized our operations in great detail for us to reach this settlement, and there's no allegation of any misappropriation of user funds,” added Teng.

Binance’s obligations to U.S. authorities

Binance will now have to bear the ongoing costs and scrutiny of its settlement with US authorities. This includes a five-year monitor ship and significant compliance initiatives to ensure Binance's complete exit from the United States.

Teng will not be implicated in the details of Binance.US' ongoing legal battle with the US Securities and Exchange Commission (SEC) over alleged securities violations. Still, he maintained the cost of meeting the requirements set forth in the company's settlement of the case with the SEC.

The Binance CEO would not comment on the non-disclosure agreement related to its $4.3 billion settlement and how the fines will be paid. Cointelegraph understands that Binance is in the process of paying its fine, while the former CEO will pay personally in a separate case brought against CZ.

In the November 21 report, the company also confirmed that transactions in USDT tokens worth approximately $3.9 billion are not related to resolution matters with the US Department of Justice.

Was Binance treated unlawfully?

Prominent figures in cryptocurrency, including former Bitmex CEO Arthur Hayes and Galaxy Digital's Mike Novogratz, have commented on the disparity between the treatment of Binance and mainstream financial firms in recent years.

Teng argues on the premise that Wall Street-like banks are not subject to the same penalties despite larger failures.

“Fines in terms of the financial sector are common. If you do a Google search of the list of fines paid by financial institutions, that list is close to $90 billion in fines,” Teng says

Whether Binance is exemplified is irrelevant. Even though the exchange may be the most regulated exchange worldwide, Binance operates in 18 different jurisdictions.

Binance is deeply focused on compliance from now. The company has occupied headlines for headhunting strategic individuals to navigate regulatory requirements in various jurisdictions.

Teng said the company has "invested heavily" in this area, pointing to the core talent of its compliance team with backgrounds in the SEC and regulatory firms such as Morgan Stanley and Barclays.

Building out of UAE, France

Binance remains a global operation company has set down two regional headquarters. The United Arab Emirates (UAE) serves as the headquarters for operations in the MENA region and France is its base for Europe

The former region is well-known to Teng, His role was involved in laying down a cryptocurrency framework for the local ecosystem. Who lived in the UAE for nine years and served as CEO for local regulator Abu Dhabi Global Markets previously.

“When I first got in touch with crypto, my take was this is the future of finance. But for this to really gain traction and for mass adoption to be brought about, you need two elements,” Teng explains.

Transparency of rules and policy was the first consideration, and the second was promoting institutional adoption. The latter point remains important to Teng as it brings in investors and liquidity and drives research.

As a result, the UAE has emerged as a recognizable oasis for the cryptocurrency and blockchain sector. It continues to attract global players in the MENA region as a base of operations.

Europe's market implementation of crypto-asset regulation also bodes well for Binance's prospects in the region.

“You have clarity of rules to operate in 27 different jurisdictions,” Teng says, which provides a blanket set of requirements for the industry that has to date suffered from “disparity in terms of rules”.

Binance was forced to cease its services in the Netherlands in June 2023 after failing to meet the registration requirements to obtain a local Virtual Asset Service Provider (VASP) license. MiCA can serve as a means to expand into new markets in 2024 and beyond.

Stepping into CZ shoes

Certainly, stepping into CZ’s shoes is an undesirable task. Teng describes Binance’s founder as an motivating leader and great mentor focused on finishing.

Richard Teng is also honest in his understanding that he cannot replace CZ’s role as a founder-CEO, but the current scenery also lends to the qualities of a fresh face and new approaches.

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

The board of directors will act as the governing authority of the company, with the new CEO reporting to the board of directors.

In his spare time, Teng tries to maintain a routine in his personal life. CEOs do regular exercise like weight control, cardio and core etc. He is a bookworm, citing Walter Isaacson's biography of Elon Musk as his most recent read.