Binance CEO Richard Teng has revealed the strategy the exchange will follow to regain its growth trajectory. Teng stated that the real objective is to attract outsiders to crypto, downplaying the recent decline of Binance in the exchange market.
Binance Reveals ‘Compliance First’ Strategy to Recover Market Share
Binance, the largest cryptocurrency exchange in the world, has outlined the steps to follow to recover its growth path. The exchange, which pled guilty to violations related to the Bank Secrecy Act (BSA) and failure to register as a money-transmitting business, is planning to lean into its new compliance-first strategy to attract new users.
Richard Teng, who took the position of crypto legend Changpeng “CZ” Zhao, explained that even with the recent decline in volumes traded and market share, which plummeted to 36.6% until September, Binance was not competing with other crypto exchanges. Teng emphasized that Binance was focused on onboarding new users to crypto.
At Binance Blockchain Week held in Dubai, Teng explained:
This is a very young industry… Crypto adoption is less than 10%, it’s probably somewhere between 6% and 8%. The more we can build a dynamic, vibrant ecosystem that supports innovation and new use cases that are emerging, everyone will be better off.
To achieve this objective, Teng believes that compliance is key and expressed that the exchange will continue to invest in compliance. He believes this could be a differentiating factor between behemoths like Binance and smaller platforms, referring to it as a “competitive differentiator.”
Binance invested over $200 million in compliance last year and expects to spend around the same number this year as adoption increases. Teng expects these costs to continue rising, as the coming year will be better than 2024 for the cryptocurrency industry. He expects good macroeconomic conditions, a global reduction in inflation, central bank rate cuts and the emergence of clear regulations will help crypto push higher.
“We serve over 237 million users globally. We are looking to onboard the next billion users into crypto,” he concluded. Zhao, who was released in September after a four-month prison term, recently stated he did not have any wish to be part of Binance’s leadership again.
Read more: CZ Reveals His Plan Beyond Binance, Steering Toward Unseen Horizons