Binance‘s regional markets chief, Richard Teng, insists that the global cryptocurrency exchange is financially secure and bears no resemblance to FTX, which recently went bankrupt despite regulatory scrutiny and regional challenges. Teng also draws attention to the news surrounding Binance and its connections with Russian banks, stating that regulatory reviews are a result of growth and that they are working towards compliance with international norms.
Binance Financially Strong
Speaking prior to the 2023 Token2049 conference in Singapore, Teng addressed the various challenges faced by Binance’s regional branches and dismissed rumors of preparing to take over from founder Changpeng Zhao. Teng stated that despite facing different problems over the past few years, Binance has managed to remain financially strong and handle them on a case-by-case basis, allowing customers to withdraw their funds.
Commenting on a recent social media post highlighting negative news or rumors about CZ, bank failures, lawsuits, closure of fiat channels, product liquidations, and employee turnover, Teng said that comparisons made with FTX’s failure are unfair:
“After FTX, there were different rumors and FUD. People tried to associate us, but that’s not true. Our assets are fully backed.”
Teng also addressed reports about top executives leaving Binance and the company’s ties with Russian banks. He stated that the tremendous growth experienced by the exchange over the past six years continues to overshadow it.
“All these reviews come from being the largest, and we welcome these reviews.”
MiCA Marks a Step in the Right Direction
While stating that Binance has not yet made a decision regarding its franchise serving the Russian market, Teng emphasized that the exchange continues to comply with international norms and standards regarding sanctioned entities and individuals:
“Regarding our plans for Russia, we have made it very clear that all options have been on the table in the past few weeks. We are still researching what needs to be done for the franchise in question.”
Meanwhile, regulatory frameworks maturing in various jurisdictions are being welcomed by the global exchange. Teng stated that the European Union’s Markets in Crypto-Assets Regulation (MiCA) could provide universal benefits to exchanges by establishing standard rules for the industry:
“This differing approach makes life very difficult for platforms like us. From a local distribution standpoint, we need to understand that rules and regulations vary greatly. Therefore, what we hope for is harmonized standards.”
Teng stated that MiCA is a step in the right direction in terms of providing a consistent set of standards for the 23 EU member states and could lead to broader convergence of global regulatory guidelines for the industry.
