Richard Teng: Binance's New Leader
Following the allegations against Binance, CZ is stepping down, placing Richard Teng, who took charge of overseeing all regional markets outside the USA in May 2023, under regulatory scrutiny.
Who is Richard Teng and what should Binance's clients expect from these changes?
Richard Teng: A Stalwart in Traditional Finance
Richard Teng is a well-known figure in the financial sector, primarily for his robust ties with regulatory and supervisory bodies. He has a wealth of experience in the banking and insurance market segments:
- He contributed significantly to the broad-scale transformation of Singapore's financial services industry in the late 1990s.
- Teng worked at the Monetary Authority of Singapore (MAS), heading the financial market regulatory group from 2007 to 2015.
- He personally led the development and administration of the Securities and Futures Act, which remains in effect today.
- He initiated the regulatory foundation for the Singapore Code on Take-overs and Mergers.
- Teng was the leading negotiator for the Korea-Singapore Free Trade Agreement.
- His involvement extended to being a member of the Corporate Finance Audit Committee.
- He served as the chair of the Competitiveness Committee for the Singapore Exchange (TradFi).
- Between 2007 and 2015, Teng led the team overseeing financial market regulation under the Monetary Authority.
- From 2015 to 2021, he served as the CEO of the Abu Dhabi Global Market, a finance center for the rapidly developing economies of the Middle East, Africa, and South Asia.
Richard Teng. Source: Bloomberg
Richard Teng ventured into the realm of cryptocurrency in July 2021 when he joined the Blockchain Association Singapore as an advisory board member. Intriguingly, almost immediately after this, CZ offered him the role of head of their Singapore office, which quickly led to the exchange securing a license to operate in the city-state.
The Meteoric Career Rise of Richard Teng
Richard Teng's ascent from the head of a regional subsidiary to the CEO of Binance took just over two years.
His initial role was leading the exchange's operational activities across Asia, North Africa, and the Middle East. Following that, he oversaw the European subsidiaries, Bifinity in Lithuania included.
In late May 2023, Changpeng Zhao appointed Teng to oversee all regional markets outside the United States.
Speculations about CZ grooming a successor amid regulatory scandals were already circulating, but Zhao refrained from addressing these rumors.
The conclusive decision likely occurred during the dispute with the Ontario Securities Commission, leading to Binance's exit from the Canadian market. Now, it's time for the official announcement.
Perhaps CZ is hopeful that Teng's governmental experience will be a lifeline in navigating turbulent regulatory waters. In essence, Teng could potentially leverage his previous relationships to negotiate effectively. However, could Teng be set up as a scapegoat? While the former assumption appears more plausible, only time will reveal the truth.
It's worth recalling the community's cynical jokes about Binance's operational style ('There are only two opinions: CZ's opinion and the wrong one').
There was indeed a rigid power hierarchy, where all decisions about the exchange's future were personally made by Changpeng Zhao. With Teng now stepping into the CEO role, there's widespread curiosity: Will Zhao persist as the 'eminence grise,' or will he genuinely relinquish full control to the new CEO?
