Binance’s new CEO: the exchange made mistakes during the period of hypergrowth

What’s new? Richard Teng, the new CEO of global crypto exchange Binance, admitted that the company made mistakes during its hypergrowth period. In less than a year since its launch in July 2017, it has become the largest platform in terms of trading volume. The top executive added that Binance is still in the development phase, transforming from a poorly regulated tech startup to a conventional financial company, but it has already learned from its mistakes.

Fortune’s material

What else is known? In an interview with Fortune, Richard Teng emphasized that Binance is a young company by any measure: “In human terminology, it's a child preparing to go into early school.” Teng predicts that efforts to make Binance a regulated company will, in the long run, give it a substantial market share, which will be boosted by an influx of institutional capital.

Teng, who previously served as regional director, replaced Binance founder Changpeng Zhao, who stepped down as CEO as part of an agreement with the US Department of Justice to settle claims of sanctions violations and anti-money laundering regulations. Part of that agreement also included paying a $4,3 billion fine and Zhao pleading guilty to failing to comply with AML regulations.

The businessman’s sentence will be announced in February next year, and the maximum punishment could be imprisonment for 18 months. In this regard, the Department of Justice also asked the court to prevent the businessman from flying to the UAE, where he lives with his wife and three children. Zhao’s lawyers responded by assuring that escape was impossible, as it would entail legal and reputational costs.

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Earlier, to settle the commission’s claims, Binance’s founder paid a $50 million fine

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Несмотря на серьезность обвинений, предъявленных бирже и Чжао, Тэн подчеркивает, что они не касались безопасности клиентских активов, которая продолжает обеспечиваться на высоком уровне.

Despite the seriousness of the charges against the exchange and Zhao, Teng emphasizes that they did not concern the security of client assets, which continues to be maintained at a high level.

Previously, Teng acted as a consultant to the Central Bank of Singapore (MAS) and the Abu Dhabi Global Market (ADGM), and amid growing institutional interest in the cryptocurrency industry, he is positive about the opportunities in his new position. For instance, he intends to promote the adoption of global crypto regulations.

Teng added that Binance itself will have a traditional corporate structure with a board of directors and headquarters. Also in the future, the company will disclose the composition of the board and will begin to publish financial statements regularly.