Binance CEO Richard Teng: Too Soon to Discuss Re-Entering the U.S. Market

Binance CEO Richard Teng has signaled that it is premature to discuss whether the cryptocurrency exchange will re-establish itself in the United States. Speaking to Bloomberg TV on December 9, Teng emphasized Binance’s focus on global operations rather than re-entering a market it exited in November 2023 following a $4.3 billion settlement with U.S. authorities.

“Whether we re-enter the U.S. market, I think that’s a premature discussion,” Teng said when asked about the possibility of returning or relaunching the Binance USD (BUSD) stablecoin.

Teng outlined Binance’s current priorities, which include capturing global market share and targeting institutional investors, sovereign wealth funds, and high-net-worth individuals. These groups, he believes, are poised to increase their allocations to cryptocurrency.

“As of now, we are focusing on our global deployment,” Teng stated, indicating a strategic pivot towards expanding Binance’s international footprint.

Challenges and Compliance Efforts

Binance’s U.S. exit came as part of a settlement with the U.S. government addressing allegations of sanctions violations, money laundering, and operating as an unlicensed money transmitter. The settlement included the appointment of independent compliance monitors by the Justice Department and FinCEN for three and five years, respectively.

Teng dismissed speculation that Binance might leverage a pro-crypto administration under President-elect Donald Trump to reduce or remove these monitoring requirements.

“Any discussion on the topic is moot,” Teng said, adding, “Compliance is the way to go. With clearer regulations worldwide, we are heavily investing in compliance to make it a competitive advantage.”

Teng, who took over as CEO in November 2023 after Changpeng Zhao’s resignation, has prioritized regulatory compliance since assuming leadership. Zhao stepped down after admitting to violating U.S. anti-money laundering laws, leaving Teng to navigate Binance through a period of increased regulatory scrutiny.

Teng has acknowledged past gaps in Binance’s compliance practices, stating in December 2023 that significant efforts are underway to address these issues and ensure adherence to global standards.

Binance.US: Limited U.S. Presence

While Binance exited the broader U.S. market, its U.S.-based subsidiary, Binance.US, continues to operate. However, it functions solely as a crypto exchange and cannot transact in U.S. dollars due to ongoing legal challenges. The Securities and Exchange Commission (SEC) had accused Binance, Binance.US, and Zhao of selling unregistered securities, among other allegations.

As Binance recalibrates its strategy, Teng’s cautious stance reflects the complexity of re-entering a market with stringent regulatory demands. While the Trump administration’s crypto-friendly stance may open doors for broader industry growth, Teng remains focused on building a compliance-driven foundation for Binance’s global operations.

For now, Binance’s U.S. comeback remains a distant prospect, with the exchange’s energy directed at strengthening its international presence and navigating regulatory landscapes worldwide.