New Binance boss pledges to work with regulators after ‘missteps’

The new chief executive of Binance has admitted to “missteps and misguided decisions”, as the company pledges to work closely with regulators to boost regulation in the highly volatile cryptocurrency industry.

The world’s biggest cryptocurrency exchange sees no need to change its core user-centric “mantra” in the aftermath of a legal case that resulted in erstwhile chief executive Changpeng Zhao stepping down, Richard Teng told media in an interview.

Mr Teng, the former chief executive of the Financial Services Regulatory Authority at Abu Dhabi Global Market, stressed that taking responsibility for any missteps is “what financial institutions should do”.

“Financial institutions do encounter challenges in terms of compliance and should take responsibility for that. And we move on. Now is a new chapter. Our mantra is the same – we focus on financial freedom for everyone,” he told media at the Fortune Global Forum in Abu Dhabi on Monday.

Mr Zhao last week pleaded guilty to criminal charges and resigned from his position as part of a $4.3 billion settlement with the US Department of Justice, as federal prosecutors revealed charges including breaking US anti-money laundering laws, unlawful money transmitting and sanction breaches.

At the moment, aside from “being a resource for only historical areas of the business”, he plans “to rest and probably do mentorship for people, invest into this sector and many other sectors that are of interest to him”, Mr Teng said.

The cryptocurrency industry has struggled with a spate of challenges, most notably regulators attempting to establish some control over the industry.

Despite this, the sector remains “robust”, with new investors and funds flowing through that are being used to build new projects, Mr Teng said.

Binance predicts growing collaboration between crypto players and authorities, contributing to “regulatory certainty”, he said.

However, the engagement of authorities on crypto regulations in different jurisdictions is “disparate” – but those who focus would be at the forefront of what is believed to be the future of finance, he said.

“Where policymakers and regulators are willing to spend time, energy and resources to understand the sector, the opportunities and the innovation that the sector brings, as well as how risk can mitigated, [they can be leaders],” Mr Teng said.

“And those are things that are needed for users to have better trust and greater confidence to bring about mass adoption.”