Binance's newly appointed CEO, Richard Teng, recently mentioned in an interview with Cointelegraph that the compliance issues encountered during the company's rapid growth since 2017 are now a thing of the past. He pledged that the current Binance is markedly different from its early days, emphasising a focus on compliance and hiring key talents from the SEC and traditional financial institutions.

Rapid Growth Led to Compliance Failure

Regarding the $4.3 billion settlement as a result of early gaps in compliance,Richard Teng believes that Binance's explosive growth since 2017 has resulted in a heavy cost for compliance in the future.

He recalled how CZ transformed Binance from a team of six individuals into a global institution serving over 166 million users with thousands of employees.

"In those very early days, while we were building up the company, there were gaps in terms of compliance. That resulted in all these breaches and mistakes, but these are historical issues."

Flaws in its initial compliance system resulted in the biggest crypto-related settlement in U.S. history. However, Teng contends that company has always ensured that its user funds, security, and safety remain "sacrosanct."

Focused on Compliance

Under Richard Teng's leadership, Binance has focused on compliance efforts and has recruited key talents from jurisdictions worldwide, including the U.S. Securities and Exchange Commission (SEC) and major financial institutions like Morgan Stanley and Barclays, to join its compliance team. Richard Teng mentioned that Binance has "invested heavily" in compliance.

Teng explained,

"When I first got in touch with crypto, my take was this is the future of finance. But for this to really gain traction and for mass adoption to be brought about, you need two elements."

The first consideration is clarity of rules and regulations, and the second is fostering institutional adoption.

The Meaning of the Teng’s Gesture "3"

CZ typically uses the gesture "4" to calm the community and prevent FUD (fear, uncertainty, doubt). However, during an AMA session held by Richard Teng on December 1st, Richard Teng made a different gesture than former CEO CZ. He used the gesture "3" to symbolise his three commitments to leading Binance:

1) Being user-focused, always

2) Working with regulators to uphold standards

3) Collaborating with partners to grow Web3

He also pointed out,

"It's also a UAE symbol comprising 3 characters - W (Win), V (Victory) and L (Love)."