In a candid interview on CoinDesk TV, Binance CEO Richard Teng spoke about his role at the world’s largest cryptocurrency exchange, the company’s relationship with global regulators, and his outlook on the future of cryptocurrency adoption. During the discussion, Teng shared his views on the challenges and successes Binance has faced, its commitment to innovation, and the broader implications of crypto evolution.
Since taking over as CEO of Binance, Teng has focused on building a robust and compliant platform for its 220 million users worldwide. Teng noted that Binance has made significant progress in expanding its presence and obtaining regulatory approvals in several jurisdictions, including Indonesia, India, Kazakhstan, Thailand and Dubai.
Reflecting on the company’s journey, Teng emphasized that Binance’s core mission is to support “money freedom” and foster a vibrant blockchain ecosystem. He acknowledged the challenges Binance faced when he took office, such as regulatory fines, but stressed that the platform’s strong foundations and user trust, built over seven years, have allowed it to continue to prosper.
Teng clearly addressed the regulatory hurdles that Binance has faced, particularly skepticism from global regulators. He highlighted that the regulatory landscape has changed dramatically in recent years, with more countries adopting clearer frameworks for cryptocurrencies. As a former financial services regulator, Teng understands the importance of balancing innovation and risk mitigation. He emphasized that regulation should not be one-dimensional and should support both user protection and the growth of the crypto sector.
Regarding the industry as a whole, Teng mentioned that crypto has been misunderstood by both regulators and the public. He urged policymakers to become better educated about blockchain technology and the benefits of cryptocurrencies. According to Teng, the perception that crypto is primarily used for illicit activities is outdated, with the actual amount of crypto-related money laundering being minimal compared to traditional fiat currencies.
One of the most important developments highlighted by Teng is the growing institutional interest in cryptocurrency. He described 2024 as a historic year for crypto adoption, with increasing regulatory clarity and institutions like BlackRock moving from crypto skepticism to advocacy. Teng believes that institutional involvement is key to driving mainstream adoption, marking a crucial shift in how cryptocurrencies are viewed by traditional financial institutions.
According to Teng, the rapid growth of Binance’s user base is a testament to the increasing pace of crypto adoption. The platform gained its first 100 million users in five years, the second 100 million in just two years, and Teng expects the next 100 million users to arrive even faster. Binance remains committed to supporting this accelerated growth by continually improving its products and services.
Security and compliance are two of Binance’s top priorities, according to Teng. He noted that Binance’s compliance spending has increased significantly, with $230 million allocated in 2023, up from $158 million the previous year. Binance has also invested heavily in expanding its compliance team, with over 500 employees dedicated to ensuring regulatory compliance.
In terms of security, Teng discussed the importance of protecting user assets and highlighted the company’s efforts to recover funds lost to scams and fraud. Binance has helped users recover $73 million in stolen funds in 2023 alone. The company also operates a billion-dollar insurance fund (the SAFU Fund) to protect user assets in the event of a breach security.
Teng spoke about one of the biggest challenges facing the crypto industry: the lack of global regulatory harmony. Different jurisdictions treat cryptocurrencies differently: some as commodities, others as securities or payment tokens. This inconsistency makes it difficult for companies like Binance to operate seamlessly across borders. Teng advocated for a global regulatory framework that could streamline compliance and protect users more effectively.
However, Teng acknowledged that establishing such a framework would require significant political will and collaboration among regulators. Despite the challenges, he remains optimistic and believes that as the industry matures, there will be greater convergence towards standardized regulations.
When asked about his personal journey in the crypto space, Teng recalled how he first discovered cryptocurrency in 2017, a time when institutional investors were not involved in the space. He admitted that he never imagined leading Binance, given his background in traditional finance and regulation, but his belief in the transformative potential of blockchain technology ultimately attracted him to the industry.
Looking ahead, Teng is optimistic about the future of cryptocurrency. He envisions rapid growth in adoption and continued technological advancements, particularly in areas such as asset tokenization and decentralized finance (DeFi). Its goal is to position Binance at the forefront of these developments while maintaining the company’s commitment to security, compliance and user protection.
When it comes to challenges, Teng acknowledged that crypto is a very dynamic industry where new obstacles arise daily. However, he remains focused on sustainable growth and ensuring that Binance continues to innovate and adapt to an evolving landscape.
