- Binance CEO Richard Teng revealed that the company has been profitable since its fifth month and is maintaining cautious spending.
- The focus is on long-term sustainability, transparency, and establishing a permanent headquarters.
- The company has no current plans for an IPO, remains financially stable, and continues to resolve regulatory issues globally.
Binance CEO Richard Teng recently shared insights into the company’s strategic direction and financial health. According to Teng, Binance has been profitable since its fifth month of operation, and the company remains cautious with its spending.
This careful approach is part of a broader strategy to establish long-term sustainability and strengthen relationships with global regulators. Teng emphasized the importance of transparency and the company’s ongoing efforts to find a permanent headquarters.
Teng took over as CEO of Binance last year under challenging circumstances, following the departure of his predecessor, Changpeng “CZ” Zhao. Zhao stepped down as part of a multi-billion-dollar settlement with the U.S. government.
Despite these challenges, Teng inherited a profitable company that he now aims to further develop and mature. His focus has been on transitioning the exchange from a founder-led organization to one governed by a board of directors.
The exchange’s efforts to become more transparent are evident in its increased spending on compliance. Last year, the company spent 36% more on compliance compared to 2022. Teng believes that these efforts are crucial for building stronger relationships with global regulators and ensuring the company’s future success. He envisions Binance as a sustainable enterprise that will continue to thrive for the next 50 to 100 years.
No Immediate IPO Plans for Binance
Teng also addressed the ongoing speculation about a possible initial public offering (IPO) for the exchange. However, he made it clear that the company is in strong financial shape and has no need for fundraising or an IPO at this time. The exchange’s profitability and prudent spending habits mean that an IPO is not currently under consideration.
While CZ is no longer involved in Binance’s day-to-day operations, Teng acknowledged the significant role played by Yi He, Binance’s co-founder, and CZ’s partner. Yi He continues to be an integral part of the company’s management team, overseeing various aspects of the business, including human resources.
Despite the challenges posed by CZ’s past, Teng believes that Binance’s relationships with global regulators remain strong. The company has made significant progress in resolving regulatory issues in countries like Dubai, India, Thailand, and Brazil. However, Binance currently has no plans to expand into the U.S., focusing instead on markets outside the country.
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