Binance Chief Richard Teng Attributes $4.3 Billion Settlement with Inadequate Compliance Controls
Binance’s newly appointed chief, Richard Teng, expressed optimism in navigating the challenging chapter of the world’s largest crypto exchange.
Inadequate Compliance Controls Cost Binance $4.3 Billion Settlement
The freshly appointed boss stated Binance’s readiness to enforce compliance controls he labeled adequate following the $4.3 billion settlement with the US regulators.
Teng’s statement during the Financial Times Crypto Winter Summit portrayed an attempt to draw a line in the past challenges that Binance battled by confessing that it relied upon inadequate compliance controls. He indicated that Binance can overcome the challenging chapter.
The former boss of the Abu Dhabi Financial Services Regulatory Authority (FSRA) indicated that the compliance controls utilized by the company were inadequate relative to the huge size of Binance. He acknowledged the mistakes in failing to match the gigantic operation’s scale.
Teng reiterated Binance’s devotion to move beyond the mistakes and resolve the issues the US regulatory agencies highlighted following the all-time high $4.3 billion settlement.
Binance Transforming into User- and Compliance-led Entity
The Binance chief indicated that the crypto landscape is unique relative to the Changpeng Zhao reign days. He noted that Binance faces increased regulatory scrutiny amid increased institutional interest in the digital asset ecosystem.
Teng indicated that Binance was regaining assets flow following the modest outflow when over $1 billion exited the exchange following the settlement.
Teng faced a pressing inquisitive moment on diverse matters, including the exact location of Binance headquarters. He declined to offer a specific response, indicating the company would make the global headquarters location public.
Teng added that Binance is a privately-run company and is not mandated to release the financials for the public audit. The chief executive indicated that Binance is a regulated entity accountable to the regulating agencies.
Teng observed that Binance has regained its attraction of institutional VIP clients following the $4.3 billion settlement. He added that the regulatory scrutiny is set to extend to other players within the crypto market.
Teng reaffirmed Binance’s objective of transforming into a user- and compliance-led entity. Its achievement would give the company the desired sustainability beyond six decades.
Changpeng Zhao Awaits February Sentencing
Teng’s pronouncement came a month after replacing Changpeng Zhao, who departed as part of a guilty plea. The former chief pled guilty to the anti-money laundering charges and is out on a $150 million bond awaiting the February 2024 sentencing.
Zhao suffered a blow following the court ordering him to remain within the US till his sentencing. It quashed the previous decision requiring his return to UAE till a fortnight before his sentencing.
Teng’s pronouncements affirm Binance’s devotion to addressing the previous challenges. As such, it portrays optimism in the systematic efforts to resolve the compliance issues with regulators keen to scrutinize Binance operations.
Editorial credit: Iryna Budanova / Shutterstock.com
