Binance CEO Richard Teng stated that the exchange is in talks with a few different jurisdictions about selecting a new headquarters location, but has not made a choice as of publication.
It has been a long-standing concern that the biggest crypto exchange in the world lacks a headquarters. Something that Former Binance CEO Changpeng Zhao either neglected to discuss or completely dismissed, wanting to “embrace the decentralized model”, as stated in a 2021 interview. Although he did acknowledge the need for one, saying “We have come to realize that for the regulators, we need to be centralized.”
Though his vision is understandable, it has been a controversial decision that “doesn’t go well with regulators.” In the past, Binance has been hit by regulatory warnings from multiple jurisdictions, including the US, UK, and Hong Kong, but sprawling operations with no substantial record of an operational headquarters have left regulators with little control over the exchange.
The matter erupted in 2023 when Zhao pled guilty to breaking criminal US anti-money laundering regulations, leading to his resignation as CEO. This left a mark on Binance’s reputation as a transparent and secure platform, emphasizing the importance of regulation now more than ever.
Richard Teng, Zhao’s replacement, recognized this and stated in a tweet following his appointment as CEO that he is committed to “collaborating with regulators to uphold high standards globally that foster innovation while providing important consumer protections.”
It is an honour and with the deepest humility that I step into the role of Binance’s new CEO.
We operate the world’s largest cryptocurrency exchange by volume. The trust placed on us by our 150m users and thousands of employees is a responsibility that I take seriously and hold…
— Richard Teng (@_RichardTeng) November 21, 2023
In contrast, Teng initially emulated Zhao and sidestepped the matter altogether, refusing to provide any information publicly. However, his recent statements indicate that he intends to select a headquarters, noting:
“As and when we are ready to announce, we will do so.”
Binance CEO: Choosing a Headquarters May Not Be So Simple
During a fireside discussion at Paris Blockchain Week, Tang made it clear that Binance is “speaking to a few jurisdictions as of now; a few jurisdictions are under consideration.” However, the thinking behind corporate governance is “not as easy as just naming ‘oh, I want to pick this country.’ There’s a lot of considerations behind it.”
Given that the cryptocurrency space is still in its infancy, there are no global standards in place to govern its regulation. This is something that Teng highlighted during the conversation, stating it as “one of the key challenges that the crypto industry will continue to face,” and something that is going to “take a long time”.
This convolutes the decision on where to locate headquarters, as “each region treats crypto differently, with inconsistent and conflicting rules across the board.”
As a result, it is critical to make an informed decision, taking into account both the need for regulation and its implications on Binance. Tang outlined their objectives, seeking “value given our suite of products” with rules that cater to them and their “suite of uses.” Furthermore, adding that taxation agreements influence the decision.
Given the weight of these comments, Teng has demonstrated his proactive commitment to Binance’s future and his intent to justify the company’s position as the leading cryptocurrency exchange in the wake of Changpeng Zhao’s damage to its image.