Binance CEO says Trump has been ‘fantastic’ for cryptocurrency

Discussing the changing landscape, Binance CEO Richard Teng praised the Trump administration, calling it a “fantastic” reset for the cryptocurrency industry.

“It’s an extremely different environment that we’re operating in,” Teng told CNBC recently.

In a span of 16 months, Binance has transitioned from being a political outcast to potentially becoming a key player in Washington. Once known for its defiance towards regulations, Binance faced a record $4.3 billion settlement and the removal of founder Changpeng “CZ” Zhao. However, under President Donald Trump’s second administration, the crypto exchange is now navigating a more favorable political climate, according to Teng.

“We’ve seen positive outcomes from this shift,” said Teng, who took over as CEO of Binance in November 2023.

Teng’s comments come amidst reports that Binance is in discussions for the Trump family to invest in the company, as reported by The Wall Street Journal. Additionally, Bloomberg reported that World Liberty Financial, a Trump-affiliated crypto bank, is in talks with Binance to launch a dollar-pegged stablecoin.

If these deals come to fruition, it would signify a remarkable turnaround for a company that was once shunned in Washington.

Addressing the rumors cautiously, Teng stated, “I believe both World Liberty Financial and CZ himself have denied the reports.” Teng, who oversees Binance’s operations outside the U.S., refrained from commenting on the alleged Trump stake in Binance.US.

“US and .com are quite different entities, right?” he pointed out. “They have distinct shareholders, boards of directors, and CEOs.”

Binance structured its two exchanges as independent entities to address regulatory concerns and differentiate its U.S. operations from its global business.

Despite the challenges, Teng remains optimistic about the future of crypto in the current political climate.

“We’ve transitioned from four years of Operation Choke Point 2.0 to a more crypto-friendly environment,” he noted. While Binance.com does not operate in the U.S., Teng emphasized the positive impact of pro-crypto policies on the industry.

Describing a rapid global expansion, Teng highlighted Binance’s growth from 170 million to 265 million users in just one year.

“We’ve received interest from various governments globally,” Teng mentioned, citing regulatory advancements in several countries.

Binance is now licensed in 21 jurisdictions, with a significant influence beyond any single nation. This includes engagement with sovereign wealth funds, some of which are beginning to allocate funds to crypto, according to Teng.

However, amidst this optimism, Binance’s past issues loom large.

Founder and former CEO Zhao faced criminal charges, stepped down, and served a brief prison term. Binance settled with U.S. regulators for billions to address multiple violations, including with the Department of Justice and the Commodity Futures Trading Commission.

One major ongoing issue is the Securities and Exchange Commission’s civil case against Binance and Zhao.

The SEC and Binance agreed to a 60-day pause in proceedings earlier this year as they explore potential resolutions. This pause coincides with a broader trend of the SEC scaling back on high-profile crypto lawsuits, signaling a potential shift in regulatory approach under the new administration.

“In the early days, we didn’t prioritize compliance enough,” Teng admitted. “But as a responsible institution, it’s crucial to acknowledge past mistakes, rectify them, and heavily invest in compliance, which we are doing now.”

Binance now employs over 1,300 compliance professionals, constituting a quarter of its workforce, according to Teng. “Our focus is clearly on compliance,” he added.

However, challenges persist, illustrated by a recent incident in Nigeria.

Tigran Gambaryan, a top compliance officer at Binance, was detained under harsh conditions in Nigeria. Binance faced charges related to tax evasion and aiding customers in tax evasion on its platform. Gambaryan, along with another executive, was imprisoned but eventually released.

Commenting on the situation, Teng expressed dissatisfaction with the treatment of the executives in Nigeria and emphasized Binance’s commitment to collaborative efforts with governments worldwide.

Since assuming the CEO role, Teng has transitioned Binance from a founder-led startup to a board-governed organization.

“I now report to the board of directors,” Teng mentioned. “Our board consists of seven members, including independent directors and a chairman.”

Despite the challenges, Teng remains confident in Binance’s position in the market.

“We consistently hold over 40% of the global market share,” he stated, dismissing concerns about competitors’ growing influence and the rise of crypto exchange-traded funds.

Teng sees ETFs as a gateway to crypto trading, noting that while crypto operates around the clock, ETFs are limited to business hours.

Recently, Binance secured its first institutional investment in a $2 billion deal with Emirati state-owned investment firm MGX. This investment, paid entirely in stablecoins, is the largest ever made into a crypto company.

Teng views this investment as a bridge between crypto and AI, highlighting Binance’s extensive use of artificial intelligence for customer service, security, and compliance monitoring.

When asked about his concerns, Teng mentioned security, compliance, product innovation, and potential mergers and acquisitions.

“We strive to operate a robust, top-tier platform at all times,” he emphasized.