Binance CEO Responds to Claims that the Company Will Go Public

Richard Teng, who assumes the leadership of Binance in 2023, has ruled out the need for an initial public offering (IPO) as he outlines a century-long vision for the crypto giant.

Teng took over after the exchange’s founder, Changpeng “CZ” Zhao, resigned following a multibillion-dollar settlement with the US government.

Since taking over, Teng has prioritized transforming Binance from a founder-led company to one run by the board. Teng’s efforts include seeking a permanent headquarters for the exchange, which has historically been elusive regarding its base of operations.

Despite the recent surge in cryptocurrency prices and increasing interest from traditional financial institutions, Teng confirmed in an interview that Binance has no plans to go public. “We are in a very strong financial position, so we don’t really need to think about any fundraising or IPO right now,” Teng said. He added that Binance has been profitable since its early days and continues to be conservative with its spending.

Teng’s leadership signals a shift toward greater transparency and compliance. The exchange increased its compliance spending by 36% last year and is actively working to build better relationships with global regulators. “This is really about building a sustainable business that will not only be successful in the next few years, but will continue to thrive for the next 50 to 100 years,” Teng said.

The new CEO distanced himself from his predecessor, saying: “As part of the US ruling, CZ cannot be involved in the company’s operations. I do not speak to her.” However, Teng noted that Binance co-founder Ye Hi, who is also Zhao’s wife, remains an integral part of the management team and oversees the exchange’s human resources department.

When asked about the possibility of raising funds to dilute Zhao’s ownership, Teng referred the matter to the board but dismissed concerns about Zhao’s legal status affecting the company’s regulatory position. He cited recent licenses and agreements in countries like Dubai, India, Thailand, and Brazil as evidence of Binance’s ongoing efforts to address regulatory issues.

Teng made it clear that Binance’s focus is on markets outside the US, where the company faced significant legal challenges last year. Dismissing speculation that the outcome of the upcoming US presidential election would affect Binance’s operations, Teng said, “Our business is outside the US, so we are keenly watching what’s happening in the US, but it has nothing to do with our business.”

*This is not investment advice.