Binance CEO Zhaos Heir Apparent Emerges Amid Regulatory Woes

Richard Teng, a civil servant-turned-crypto executive, is seen as the possible heir to Binance’s embattled CEO Changpeng “CZ” Zhao. Teng has emerged as the

Binance CEO Zhao’s Heir Apparent Emerges Amid Regulatory Woes

Binance, one of the world’s largest cryptocurrency exchanges, has been facing regulatory challenges in recent months. Its payments partner in Australia cut off its services, preventing local customers from depositing Australian dollars on the platform via bank transfer. As a result, Binance halted all Aussie trading pairs and bank withdrawals of the local currency. This adds to the list of challenges faced by Richard Teng, who is seen as a possible heir to Binance’s embattled CEO Changpeng “CZ” Zhao.

According to sources with direct knowledge of the matter, Teng has emerged as the frontrunner to take over as CEO should Zhao relinquish that position. The succession issue has taken on additional urgency as US regulatory scrutiny of Binance mounted in recent months. The Commodity Futures Trading Commission sued Binance and Zhao himself in late March for allegedly violating derivatives regulations and accused it of having “sham” compliance.

Despite still handling more trading than all other top centralized crypto exchanges combined, Binance’s position seems precarious due to at least four US federal agencies investigating or bringing enforcement action against it. Regulators in Canada and Australia are also looking into its business practices. Even Dubai, Zhao’s adopted home and seen as a free-wheeling crypto hub, has tightened scrutiny of license applicants including Binance.

Teng is a 52-year-old Singaporean who has worked for Singapore’s central bank for 13 years until 2007 before moving on to work at the Singapore stock exchange and Abu Dhabi Global Market. He joined Binance in August 2021 as Singapore CEO and was appointed head of all regional markets outside the US by Zhao in late May.

Teng’s experience working for government entities makes him an ideal candidate to help steer Binance through the regulatory challenges it faces. Campbell Harvey, a finance professor at Duke University, stated that Teng’s appointment “checks the boxes for trust” and shows that Binance wants to work with regulators.

Binance has been gearing up for a period of increased regulatory scrutiny by hiring former Gemini Trust Co. Chief Operating Officer Noah Perlman to run its compliance operations. The company’s compliance team has swelled to more than 750 people over the past two years, according to Chief Strategy Officer Patrick Hillmann. Teng’s recent promotion is another sign that Binance is preparing for increased regulatory challenges, which were partially ushered in by the rapid demise last year of FTX, the crypto exchange seen as the most potent challenger to Binance’s dominance.