But do you expect to find it difficult to bring about a new era at Binance when the founder – which is synonymous with the company – contains the largest shareholder?
We are very clear in terms of what we are trying to build: a best class, sustainable and global platform. I work very closely with the senior management and board at the front.
How do you want people to think about the difference between the CZ -fora and the Richard Teng?
CZ started building the business in 2017, when the landscape was completely different: No institutions embraced it, and there were no rules and regulations. It was a very, very other environment.
When I took over, we had to adapt the business to the new environment – one that would meet nature much more. There will be much more regulatory clarity, although there will be contradiction and lack of harmonization [between jurisdictions].
We have invested a lot in our compliance program. We are now the most regulated exchange worldwide, with 21 different regulatory approvals. This is the way forward.
What specific changes have you implemented to ensure that the types of things that have been in trouble in the past – which led to CZ jail – can you not appear with the company again?
Last year, I believe that we held almost 100 different courses and programs for law enforcement agencies on investigating techniques. Crypto is a traceable technology. We want to emphasize the ways to use this technology to ward off, detect and prevent bad actors in space.
We want to work closely with our competitors and law enforcement agencies to make sure we have a sustainable future and can endure all these illegal financial crimes.
Under the settlement with the US Department of Justice, Binance must be submissive to supervision by external bodies. What does it look like from a practical perspective?
We have two sets of external monitors: one appointed by the doj and one by the financial crimes handshaft network. We work closely with both sets.
Our interests are in line: To make sure we invest and improve in our compliance program. If there are blind spots that we do not pick up, the compliance monitors are there to help. They go through what we have, ask for data and make recommendations on areas we need to improve.
For me, it is very useful because it is not only us to hit our chest, but to have an independent lens to say that we are doing all the right things.
In the past, Binance has interpreted itself as a global business without headquarters. How did that change under your guidance?
This is something that we pay close attention to. While our worldwide is regulated, the two fundamental things that regulators will ask for a board – which we have appointed – and a global headquarters.
The deliberation [over the location of a global headquarters] is necessarily complicated, with multiple factors: whether we can base our talent in that country, which is the regulatory framework, and so on. But we are in a deep discussion with various jurisdictions.