Binance TradFi Transformation Will Pay Off In The Long Run: Report

Key Points:

• Binance is undergoing a significant transformation under the leadership of new CEO Richard Teng, transitioning from an unruly tech startup to a conventional financial company.
• Teng emphasizes the company’s commitment to learning from past missteps and its long track record of securing customer assets.

According to Fortune, Binance’s new CEO, Richard Teng, said that Binance is transforming from an unruly technology startup into a traditional financial company. Binance TradFi transformation will adopt a traditional corporate structure, including improving transparency in the board of directors, address, and finance.

Binance is undergoing a significant transformation. Richard Teng, the new CEO, faces the daunting task of reinventing the company’s corporate culture and ensuring its competitiveness amid a $4 billion criminal settlement with the U.S. government.

As Binance pivots from being an unruly tech startup to a conventional financial company, Teng acknowledges the missteps made during its rapid growth but emphasizes the company’s commitment to learning from them. He highlights Binance’s long track record of securing customer assets and expresses confidence in filling the shoes of his predecessor, Changpeng Zhao, who is awaiting a prison sentence.

Teng’s strengths, developed through advising Singapore’s central bank and contributing to the development of a financial center in Abu Dhabi, lie in his ability to understand and regulate the crypto industry effectively. He aims to push for harmonized global rules and resolve classification issues surrounding digital assets. While this focus on compliance and regulation aligns with the industry’s need for credibility, it marks a departure from Binance’s previous identity as a stateless and often lawless enterprise.

Will Binance TradFi Transformation Pay Off?

Under Teng’s leadership, Binance will transition to a conventional corporate structure, including a board of directors and financial transparency. While specific timelines for disclosing the board’s composition and publishing financial statements are not provided, Teng emphasizes the organization’s commitment to transparency.

Additionally, Teng predicts that Binance’s effort to reinvent itself as a regulated company will pay off in the long run, positioning the company to claim its share of a growing pie as institutional money causes the percentage of individuals owning crypto to swell to 20% from around 5% today.

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