Binance Shifts Towards Compliance After DOJ Fine

Binance, a leading crypto exchange, has shifted its focus towards regulatory compliance and sustainability, says CEO Richard Teng.

This change comes after settling with the U.S. Department of Justice (DOJ) for $4.3 billion due to accusations of legal violations.

Teng highlighted the move away from a riskier operational approach to one that emphasizes strict compliance and long-term sustainability.

The exchange faced DOJ charges in November 2023 for failing to prevent money laundering, leading to a massive fine and the resignation of its founder, Changpeng Zhao (CZ). Teng, previously overseeing Regional Markets, stepped in as the new CEO. He discussed with CNBC at the Paris Blockchain Week that Binance is maturing, focusing heavily on a compliance-first mindset.

Under Teng's leadership, Binance is evolving, creating a robust compliance framework.

This new direction is a response to past criticisms and aims at ensuring Binance's growth is sustainable and compliant with global regulations.

The exchange has also formed its first board of directors to integrate diverse perspectives on its operational strategies.

Currently, Binance is choosing a global headquarters, considering regulatory and living conditions for its staff.

This decision is part of Binance's broader effort to stabilize its operations and adhere to international compliance standards, marking a significant step in its journey toward becoming a more mature and responsible entity in the crypto space.