Binance Appoints Rising Star Teng to Assume CEO Position, Replacing Zhao, at the World's Largest Cryptocurrency Exchange

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Richard Teng's appointment as the overseer of Binance's regional markets beyond the United States positions him as the frontrunner to succeed Changpeng Zhao, the founder of the world's largest cryptocurrency exchange in 2017. This move highlights Teng's previous experience as a regulator in Abu Dhabi, further solidifying his potential to take on a leadership role within the company.

This expanded responsibility comes after a recent report indicating that Changpeng Zhao, also known as CZ, is seeking to decrease his ownership stake in Binance.US, the American division of the company. This move is seen as an attempt to appease U.S. regulators and foster better relations with them.

Teng's extensive expertise and regulatory background will be put to use in his new position, where he will oversee operations in Asia, Europe, the Middle East, and North Africa for the exchange. This move comes as the exchange, which has often been the target of regulatory scrutiny, aims to resolve the increasing number of enforcement actions related to its conduct during the early years of the cryptocurrency industry. Prior to his current role, Teng held the position of Chief Regulatory Officer at the Singapore Exchange (SGX) and spent 13 years with the Monetary Authority of Singapore (MAS).

During an interview, Teng skillfully avoided the notion that he is being prepared to succeed the 46-year-old CEO.

“To speculate on such things would be premature,” Teng, 52, told CoinDesk. “Let me just stress we have a very strong management team in place and many strong leaders looking after different parts of business. I’m just happy to be part of that and to try and support the company’s agenda and aspirations.”

His new role, he pointed out, is not even a promotion, “just expanded responsibility to help [CZ] look at certain things.”

However, it is important to recall that CZ himself mentioned the existence of a succession plan when he appointed Teng as part of the team in August 2021. Initially joining Binance as the CEO of their Singapore division, Teng swiftly ascended the ranks during a challenging period for the digital assets industry.

A former Binance employee, who asked to remain anonymous, told CoinDesk via direct message: “Both senior leadership and regulators have discussed behind closed doors that Richard Teng is the only leader that could step into CZ’s shoes and both continue building the company in his vision while helping bridge the existing gap between the industry and regulators.”

Teng expresses confidence in Binance's transparency, noting that the company has been forthcoming about its past experiences. He emphasizes that Binance is still relatively young, having just reached its sixth year of operation. Teng explains that the company initially started as a technology firm during a period when regulatory frameworks and guidance were scarce in most jurisdictions. Presently, Binance boasts a team of approximately 750 compliance officers, which surpasses the number found in any other exchange, according to Teng.

“If you look at the past 18 to 24 months, the company has pivoted very strongly in terms of the direction of travel on compliance,” Teng said. “But we acknowledge there are past issues. We want to solve all those policy issues in a responsible manner with the respective parties and move on to demonstrate that we are a new organization.”

Meanwhile, the cryptocurrency industry continues to undergo rapid evolution, both in terms of technological advancements and significant changes in regulatory landscapes across various jurisdictions. Within this global context, one could argue that if U.S. regulators impose strict regulations on cryptocurrencies, it may lead to the emergence and growth of new crypto hubs in other parts of the world.

Teng highlighted the example of Dubai, where there is a clear ambition to establish a specialized regulatory agency for cryptocurrencies. Furthermore, Europe is making significant progress with its regulatory framework known as Markets in Crypto Assets (MiCA), which aligns with France's strategy to attract and support crypto companies.

“If you look at what Paris is doing, it is very conducive for businesses. Not only ourselves, a number of crypto players are trying to use Paris as their base for expansion within Europe,” Teng said.

He expressed Binance's enthusiasm regarding Hong Kong's decision to embrace cryptocurrency trading and provide licenses to companies. When questioned about whether Binance is planning to establish a presence in the region, he responded by stating, “That’s an announcement we will make when the time comes.”

Source Coindesk