The Real Reason Binance Will Never Go Public
Binance, the worldâs largest cryptocurrency exchange, isnât planning to go public anytime soon. And it isnât because theyâre sitting pretty on profits or donât feel like it. Thereâs actually a lot more going on behind the scenes.Â
Richard Teng, who took over as CEO after Changpeng Zhao stepped down, made this clear in a recent interview. Richardâs main goal? Steer Binance into a stable, long-lasting future without the headache of public scrutiny.
Changpeng âCZâ Zhao
CZâs exit was part of a multi-billion-dollar settlement with the U.S. government, forcing him to leave the company he built. Now, Richard is focused on transforming Binance from a founder-led company into one run by a board of directors.Â
With traditional financial institutions stepping into the crypto space and hopes that U.S. regulators might ease up, some people thought Binance might join the IPO frenzy. But Richard quickly shot down those rumors. According to him:
âWeâre in very strong financial shape, so thereâs really no need for us to consider any fundraising or an IPO at this time.â
Since the fifth month of Binanceâs existence, itâs been profitable, Richard claims. The companyâs been careful with its spending, and an IPO just isnât on the table.
Instead of focusing on going public, the company is pouring money into complianceâ36% more last year compared to 2022.Â
CZ had to step down after Binance got hit with a $4.3 billion fine from U.S. regulators for breaking sanctions and failing at anti-money laundering (AML) rules.Â
The Binance founder even admitted to not maintaining a proper AML and know-your-customer (KYC) regime, which got him a four-month prison sentence. But now, Richard said:
âAs part of the U.S. resolution, CZ is not able to be involved in the operations of the company. I donât speak to him.â
Even though CZ is out, Binanceâs co-founder Yi He, is still heavily involved in the company. Sheâs in charge of Binanceâs HR department and jokingly calls herself the chief customer service officer.
Richard made sure to add that Yi is âa highly talented, highly independent-minded person.â When asked if Binance had considered raising money to reduce CZâs ownership, Richard dodged the question.
Yi He
He said that decision would be up to the shareholders and the board, not him. Despite CZâs status as a felon, Richard said it hasnât been as big of a problem for getting regulated as some might think.Â
âWe do work closely with global regulators. In many places around the world, itâs not a problem. There could be areas where it may be a challenge, but we have already resolved some of those issues.â
The exchange has been busy securing licenses and making settlements in places like Dubai, India, Thailand, and Brazil. Richardâs got his work cut out for him, but for now, Binance is staying private, profitable, and far away from the U.S. markets.