Binance, the largest crypto exchange by trading volume, will finally establish its headquarters — contrary to its popular philosophy that a decentralized firm does not need an office.
Speaking at Paris Blockchain Week, Binance’s new CEO Richard Teng said the crypto exchange is in discussions with a few jurisdictions where it might put down roots, CNBC reports. By making this move, the crypto exchange might be signaling to authorities that it is ready to make major changes.
What’s going with Binance?
Teng emphasized how he wants to lead the crypto exchange from a fresh point of view. He said the company has moved beyond cultural issues after being fined $4.3 billion by the Justice Department. The allegations related to events that occurred at the “early stages” of the company’s development, he said in remarks reported by CNBC, adding that the company has now reached “regulatory maturity.”
In November 2023, Binance pleaded guilty to federal money laundering charges. As part of the settlement, the company agreed to pay $4.3 billion. The founder and then-CEO of Binance, Changpeng Zhao (also known as CZ), also pleaded guilty and stepped down from his position. He will be sentenced soon and faces up to 18 months in prison.
During his appearance Tuesday in Paris, Teng also discussed the legal issues faced by Tigran Gambarayan, a U.S. citizen and Binance executive who is facing tax evasion charges in Nigeria. The CEO expressed his desire to bring Gambarayan back to the U.S. and resolve the matter with Nigerian authorities, CNBC reports.
Why hasn’t Binance had an office?
Binance never had an office and faced regulatory issues with authorities around the world. The crypto exchange never considered itself a company with headquarters and claimed to be fully decentralized. Binance’s former CEO once said that since Bitcoin doesn’t have a physical office, Binance didn’t need one either.
He Binance’s office was wherever he sat.
What’s next for Binance?
The past few years have been challenging for Binance amid regulatory scrutiny. The crypto exchange was left in turmoil after the DOJ fine, its CEO’s departure, and the fallout from the collapse of the crypto exchange FTX.
Teng wants to start fresh, and last week Binance named its first board of directors to satisfy U.S. regulators. Binance has also established local entities in countries such as Malta and Singapore to comply with local regulations and obtain regulatory approvals and licenses.