According to Richard Teng, head of regional markets at Binance, the world’s largest cryptocurrency exchange has no operational similarities with collapsed FTX. In an interview before the Token2049 conference in Singapore, Teng addressed various issues facing the exchange, including regulation, users, and potential successors to Binance CEO Changpeng Zhao (CZ).
Teng firmly denied any comparisons with FTX, stating that both exchanges have different structures for asset management and customer relations.
Regarding CZ’s recent tweet about negative news and lawsuits, Teng emphasized that comparing the two exchanges is not properly informed, as Binance’s assets are backed 1:1.
“There were different rumors and FUD after FTX. People tried to associate us, which is totally untrue. Our assets are backed one-to-one.”
In its latest proof of reserves report, Binance assured that it has enough funds to cover user assets if necessary. The report shows over-collateralized coins, including Bitcoin (BTC) and Ethereum (ETH) at over 5%, and BNB, USDT, and BUSD at 114%, 118%, and 107%.
Teng also highlighted the exchange’s commitment to global rules and praised the Markets in Crypto Assets (MiCA) regulation as a significant effort to establish industry standards.
“This disparate treatment makes life very difficult for global platforms like ourselves. In terms of local deployment, we need to understand how the rules and regulations are very different. So, what we hope for is harmonized standards… MiCA is a step in the right direction.”
Russian and Perceived Exodus
Teng stated that despite regulatory challenges, Binance will address each one step by step to ensure full compliance. Regarding recent concerns about the Russian market, he mentioned that a decision has not yet been made, but the exchange is fully committed to global standards when dealing with sanctioned firms.
“On our plans for Russia, we have stated very clearly in the last couple of weeks that all options are on the table. We continue to explore what we need to do for that particular franchise going forward.”
Last month, Binance faced criticism for listing two sanctioned Russian banks in its peer-to-peer services. The exchange has since removed the listings, along with similar actions taken by competitors Bybit and OKX.
Following regulatory setbacks and the Russian controversy, several Binance executives have left the company. Although CZ has downplayed these events, some observers have expressed concerns.