Binancethe world’s largest cryptocurrency exchange by trading volume, is making a concerted effort to shed its past reputation and embrace regulatory compliance.
What happened: Speaking at Paris Blockchain Week on Tuesday, Binance CEO Riccardo Teng reflected on the company’s history and its $4.3 billion settlement with the U.S. Department of Justice (DOJ), saying, “In those very early stages of development, where the rules are nascent and there’s no clarity, Binance has operated in a certain way. But we have moved on as the company moves towards greater maturity.”
This maturity is demonstrated by Binance’s agreement in November to pay the US government $4.3 billion, marking the end of a years-long investigation.
The Justice Department had criticized the company’s initial approach to compliance, citing the former CEO Changpeng Zhaohis preference to “ask for forgiveness rather than permission” and his priority to “growth of Binance over compliance with US law.”
In response to these challenges and as part of its commitment to compliance, Binance recently unveiled its first board of directors.
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Despite the criticism directed at the board of directors composed mainly of industry insiders, including Teng himself, he defended this decision, underlining the strategic importance of internal experience.
“It is important to ensure that the talent that will drive Binance’s business is unique,” Teng explained, highlighting the blend of internal and external perspectives to guide the company’s future.
The question of Binance’s global headquarters remains open, with Teng describing the selection process as “very deliberate” to meet the company’s operational and regulatory needs.
He further explained: “It’s not an easy decision… whether the jurisdiction has the regulatory framework to accommodate our products… whether we can host more people there as part of our corporate headquarters.”
What’s next: As Binance continues to navigate its path to regulatory compliance and business maturity, these developments will likely be a hot topic at Benzinga’s upcoming Future of Digital Assets conference on November 19.
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