Binance, the world's largest cryptocurrency exchange, isn't planning to go public anytime soon. This decision involves several factors, which were discussed in an interview with Richard Teng, the new CEO of the company.
New Leadership and Strategy
Richard Teng, who took over as CEO after Changpeng Zhao stepped down, has made it clear that the goal is to steer the company towards a stable future free from the scrutiny that comes with being a publicly traded company. CZ's exit was part of a multi-billion-dollar settlement with the U.S. government, forcing him to leave the company he founded. Now, Richard is focused on transforming Binance from a founder-led company into one run by a board of directors.
Financial Status and Expenses
Since its inception, Binance has been profitable. According to Richard Teng, the company is in very strong financial shape, so there's no need to consider fundraising or going public. The focus is currently on compliance, with spending on this front increasing by 36% last year compared to 2022.
Regulatory Relationships
After being hit with a $4.3 billion fine for sanctions violations and anti-money laundering failures, Changpeng Zhao stepped down from his position. Despite his status as a felon, Richard Teng noted that this hasn't been as significant an obstacle for obtaining licenses and settlements with regulators. Binance is actively working to secure licenses and resolve issues in places like Dubai, India, Thailand, and Brazil.
Binance continues to develop as a private company, emphasizing compliance and cooperation with regulators worldwide.
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