In a conversation with CNBC, the CEO of Binance, Richard Teng, discussed Binance‘s internal matters and pledged to uphold regulations after reaching a $4.3 billion penalty agreement with the United States Department of Justice (DOJ).
Teng additionally brought up Binance’s progression towards becoming more established and discussed possible plans for setting up a central headquarters, an absence of which has drawn harsh criticism from regulators globally.
CEO Emphasizes Cultural Shift Towards Compliance
The US Department of Justice has alleged that Binance acted aggressively, implementing certain business practices before seeking approval, during the initial phases of its development when regulatory norms were not clearly defined. Teng admitted to these concerns, acknowledging that Binance followed a specific operational strategy in the absence of clear regulations.
Nevertheless, Teng pointed out that Binance has overcome those cultural challenges as it has evolved. The head of the exchange asserted that Binance is presently focused on sustainability and adherence, as demonstrated by its initiatives to create a stringent compliance system.
Binance reached a $4.3 billion deal with the US government to resolve the accusations against them. This amount consisted of a $2.5 billion asset seizure and a penalty totaling $1.8 billion.
Previously serving CEO, Changpeng Zhao (known as CZ), relinquished his position and was accused of breaching the Bank Secrecy Act. A notice in a Seattle federal court announced that his sentencing has been rescheduled to April 30th.
In a similar vein, Binance faced allegations for enabling trades between American users and individuals in countries under US sanctions. According to the Department of Justice, Changpeng Zhao’s focus on expanding Binance came at the expense of adhering to US legal regulations, resulting in these unlawful transactions.
To address regulatory issues, Binance named its inaugural board of directors, consisting of both executive and non-executive members. Teng justified this appointment, explaining that the diverse skillset brought by the new board members will propel the business forward while ensuring advanced tech and product enhancements.
Binance Explores Options For Global Headquarters
In the interview, Binance shared that they haven’t decided on a definite location for their headquarter yet. But they are proactively investigating various possibilities to address the ongoing issue of not having a fixed headquarters.
Teng emphasized the significance of carefully choosing a legal jurisdiction that can effectively regulate Binance’s diverse offerings and large user community.
The choice takes into account the capability to build a strong corporate base and draw in skilled workers. Previously, Paris was proposed as a prospective site for the exchange’s main office, but the organization is said to be carefully weighing different factors before reaching a conclusion and officially announcing it.
At present, the value of the platform’s own token, BNB, is at $582. This is a 2% drop compared to the previous 24 hours. It’s worth mentioning that the price of BNB has shown a clear trend of oscillating between $578 and $590 over the last four days.
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2024-04-09 21:11