Binance regional markets head Richard Teng insists the global cryptocurrency exchange is financially secure and in no way similar to bankrupt peer FTX despite recent regulatory scrutiny and regional challenges.
Speaking exclusively to magazine editor Andrew Fenton in Singapore ahead of the 2023 Token2049 conference, Teng addressed a variety of different challenges facing Binance's regional arms and downplayed reports that he is being groomed to take the reins of the founder Changpeng "CZ". Zhao in the future.
Teng said that while Binance has faced different issues in recent years, it has managed to address them on a case-by-case basis while still remaining financially sound and able to process customer withdrawals.
I saw some debates in the community. When you do the right thing and there is FUD, you don't have to do anything. The community defends you.
Let me summarize. There has been a lot of negative news/rumours, bank runs, lawsuits, closure of fiduciary channels, product liquidations,…
- CZ Binance (@cz_binance) September 7, 2023
Commenting on a recent CZ social media post that highlighted “negative news/rumours, bank runs, lawsuits, trust channel closures, product sell-offs, employee turnover,” Teng said comparisons to the FTX failure were unjustified:
“There were different rumors and FUD after FTX. People tried to associate us, which is totally false. Our assets are backed one by one.”
He also referred to the recent Cointelegraph exclusives that revealed that high-level executives had left Binance as well as another report on company's ties to Russian banks. Teng said the exchange's stellar growth in the space of six years continues to put it in the spotlight.
“All of this scrutiny will come from being the biggest — regulator scrutiny, media scrutiny — and we welcome the scrutiny.”
Teng said that Binance has not yet made a decision regarding its franchise serving the Russian market, although he maintained that the company continues to adhere to international norms and standards regarding sanctioned entities and individuals:
“In terms of our plans for Russia, we have stated very clearly in recent weeks that all options are on the table. “We continue to explore what we should do for that particular franchise in the future.”
Meanwhile, the global exchange is also welcoming the maturation of regulatory frameworks in various jurisdictions. Teng said that the European Union Cryptoasset Markets (MiCA) Regulation could benefit exchanges universally by creating standardized rules for the industry:
“This unequal treatment makes life very difficult for global platforms like ours. In terms of local implementation, we must understand that the rules and regulations are very different. Therefore, what we hope for are harmonized standards.”
Teng said MiCA was a “step in the right direction” by providing all 23 EU member states with a consistent set of standards, which in turn could lead to a broader convergence of global regulatory guidelines for the industry.
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