Binance CEO Richard Teng Says Re-entering the US Market Is Premature

Binance’s CEO Richard Teng has stated that it is too early to discuss the possibility of the cryptocurrency exchange re-entering the United States market, despite the incoming administration being seen as more crypto-friendly.

In an interview with Bloomberg TV on December 9, Teng responded to questions about Binance’s future in the US, noting that the conversation about returning to the country is premature. "Whether we re-enter the US market, I think that’s a premature discussion," Teng said. He added that the company is focused on its global expansion strategy and intends to target institutional investors, sovereign wealth funds, and high-net-worth individuals who are beginning to allocate funds to the crypto space.

Binance's Forced Exit from the US

Binance was forced to exit the US market in November 2023 after settling a $4.3 billion lawsuit with the US government. The settlement, which resolved allegations of sanctions violations, money laundering, and operating as an unlicensed money transmitter, also included provisions for oversight. The US Department of Justice appointed an independent compliance monitor for three years, and the Treasury’s Financial Crimes Enforcement Network (FinCEN) assigned a separate monitor for five years.

When asked whether Binance might appeal to the new pro-crypto administration under President-elect Donald Trump to shorten or lift these compliance monitoring periods, Teng dismissed the idea, calling any such discussions “moot.” "I believe that compliance is the way to go," he stated. "Given that regulations are going to be much clearer throughout the world, we have the ability to invest very heavily in compliance. I want to make complete compliance a competitive advantage."

Teng's Vision for Binance’s Future

Teng, who took over as CEO of Binance in November 2023 following the resignation of founder Changpeng Zhao, has emphasized a shift towards stronger compliance in Binance’s operations. Zhao stepped down after admitting to violating US money laundering laws. Teng’s leadership has focused on improving Binance’s regulatory standing in multiple jurisdictions, and he acknowledged in a previous interview with Cointelegraph that there had been “gaps in terms of compliance” that needed to be addressed.

Since Teng’s appointment, Binance has worked to solidify its position in international markets while ensuring that it meets regulatory standards. "We are focusing on our global deployment," Teng said, signaling that the exchange’s priorities are now centered on expanding its reach beyond the US.

Binance.US Still Active, but Limited

While Binance no longer operates in the US under its main platform, its US arm, Binance.US, continues to function, albeit in a limited capacity. The US subsidiary operates as a crypto-only exchange, meaning it cannot process transactions in US dollars. Binance and its CEO, Zhao, are still under investigation by the US Securities and Exchange Commission (SEC), which has accused them of selling unregistered securities among other allegations.

The Future of Binance in the US

Binance’s prospects for re-entering the US market remain uncertain, with Teng indicating that the focus for now is on global expansion and adhering to regulatory standards. While the new administration is expected to usher in a more crypto-friendly approach, Binance’s future in the US will depend on navigating the complex regulatory landscape and completing its ongoing compliance efforts.

In summary, Richard Teng’s comments suggest that while Binance remains committed to regulatory compliance and expansion, any discussions about returning to the US are currently on hold. For now, the company is concentrating on its global strategy, preparing to capture a larger share of the institutional crypto market.