Binance’s Richard Teng Emphasizes Long-Term Growth, Avoids U.S. IPO Amid Expansion

• Binance has been profitable since its fifth month and focuses on compliance and financial sustainability under Richard Teng.
• Binance rejects IPO plans due to strong financial health and emphasizes long-term sustainability over fundraising.
• Binance shifts focus from the U.S. to global markets like Dubai and Brazil, enhancing its regulatory relationships worldwide.

Binance CEO Richard Teng has revealed that Binance has been profitable since its fifth month of operation and is strategically focused on establishing strong relationships with global regulators. 

Teng emphasized that Binance’s cautious spending approach has boosted its financial strength, helping the company prepare for future growth. He also hinted at plans to ensure the company’s development spans the next 50 to 100 years, a strategy rooted in transparency and finding a permanent headquarters.

Transforming Binance’s Structure for Longevity

Teng’s leadership of Binance marks a shift from its founder-led origins under Changpeng “CZ” Zhao. CZ, who stepped down amid a multi-billion-dollar settlement with U.S. regulators, left a legacy of profitability, but Teng has focused on steering the company towards a more structured management model. 

Binance is evolving into an organization governed by a board of directors, moving away from CZ’s centralized control. Although the company has been reluctant to pinpoint a specific location for its headquarters, Teng is actively searching for a permanent base to align with global regulations.

This transformation aims to strengthen Binance’s relationships with regulators worldwide. By focusing on compliance and transparency, Binance hopes to cement its status as a sustainable enterprise. Teng noted that the company increased its compliance spending by 36% last year, signaling its commitment to transparency and regulatory cooperation.

No Plans for an Initial Public Offering (IPO)

Despite speculation about a potential IPO, Teng confirmed that Binance is not considering going public. He stated that Binance’s robust financial health eliminates the need for external fundraising or an IPO. Since its early days, Binance has been profitable, which has allowed the company to avoid discussions around raising capital.

We are in very strong financial shape, so there’s really no need for us to consider any fundraising or an IPO at this time,” Teng said. “Since the fifth month of Binance’s operation, it has been profitable, and it has been very prudent in terms of spending. So [an IPO] is not a subject that has come up.

While some crypto companies are preparing for IPOs amid rising prices and traditional finance’s entry into the market, Teng made it clear that Binance is focusing on long-term sustainability, not short-term fundraising.

Steering Clear of the U.S. Market

Binance is currently concentrating on markets outside the United States. Although the U.S. levied a substantial fine on the company in 2023 for violating sanctions and anti-money laundering laws, Teng made it clear that the U.S. is no longer a priority for Binance’s expansion plans. Instead, the company is strengthening its regulatory efforts in regions like Dubai, India, and Brazil, among others.

Teng highlighted the importance of clearing past regulatory hurdles and ensuring Binance’s future compliance. Although CZ is no longer involved in the company’s operations, his co-founder Yi He remains integral to Binance’s management. Despite legal challenges, Binance aims to solidify its global presence through regulatory cooperation.