A chat with Binance Singapore CEO Richard Teng

Singapore

FOR seven and a half years at the Singapore Exchange (SGX), Richard Teng worked closely with the Monetary Authority of Singapore (MAS) to ensure that investors were protected. He also kept watch on whether the markets were fair, efficient and transparent, and that, as far as possible, no systemic risks cropped up. As the SGX's chief regulatory officer, he was responsible for policy and framework in the areas of listing, trading and clearing as well as regulatory solutions for new products and services.

Six years on, Mr Teng is now the chief executive officer of the Singapore arm of Binance, a global cryptocurrency exchange that in the last 24 hours has facilitated close to US$30 billion in trading volume.

Founded in 2017 by Chinese-Canadian entrepreneur Changpeng Zhao, Binance has faced regulatory pressures from multiple jurisdictions including the US, the UK, Hong Kong, and the European Union members over compliance standards, investor protection and illicit activity.

More recently, the MAS ordered the Binance.com site to halt payment services to residents in Singapore and to cease soliciting business from residents, for possibly breaching the Payment Services Act. The MAS has also placed Binance.com on its Investor Alert List, in a warning to consumers that the website is neither regulated nor licensed to provide payment services.

These days, instead of formulating rules and regulations, Mr Teng finds himself having to reassure his former colleagues that Binance Singapore intends to comply with rules and is ready to cooperate with regulators to protect users.

"A key part of my work will be to work closely with industry leaders and policy-makers to enhance understanding of this fast-growing industry and support its sustainable growth. I will focus on securing more strategic partnerships, fostering innovation and furthering the local cryptocurrency ecosystem in Singapore."

He clocked his formative years at the MAS, a time he considers transformative because as a young officer, he saw "great leaders in action", including Prime Minister Lee Hsien Loong, Deputy Prime Minister Heng Swee Keat, Senior Minister Tharman Shanmugaratnam, Koh Beng Seng, Teo Swee Lian and Andrew Khoo.

"Witnessing their critical thinking, analytical decision-making, and managerial approaches were hugely beneficial and had a deep impact on me," Mr Teng told The Business Times.

After 13 years at the MAS, he joined the SGX. There, he had the benefit of learning from Hsieh Fu Hua and Magnus Bocker, consecutive chief executive officers during his time there. Yeo Lian Sim, then SGX's chief of regulation and risk management, also lent her perspective; Gan Seow Ann, then SGX's president and now the vice-chairman for South-east Asia and the Asia-Pacific at UBS, gave the added consideration from a commercial lens.

Leadership models

But the person who has had the most impact on him is his first supervisor, Tan Kim Kway, whom he describes as an atypical civil servant and a no-nonsense manager who focused on outcomes rather than form.

Mr Teng said: "Being candid, he spoke his mind freely, and did not require office face-time or time-stamp. In the 90s, this was a rarity in the civil service. He trusted young officers to make key decisions, gave us the opportunity to learn from the hard knocks that were the result of poor decision-making, while sheltering us from severe consequences.

"The belief in my ability, building of self-confidence, and the call to make difficult decisions under pressure were invaluable. I matured exponentially as a professional under his stewardship. Over time, my staff have told me that some of the traits they see in me include being analytical, decisive, and clinical."

This is reflected in his leadership style, which is encapsulated in the Chinese saying "Da shi kai xiao hui, xiao shi kai da hui" - which can be boiled down to long meetings and large settings not being conducive for critical decision-making; only key personnel need be present to deliberate.

Mr Teng shares the same philosophy as former US President Ronald Reagan, who said "a successful leader inspires and leads others to success".

He said: "The organisation with good talent in the right positions will outperform. Putting the right person with the right fit for the job to deliver the right outcome is more than half the battle won.

"Commitment to vision, and the ability to exude positive energy to inspire and drive the entire team towards a common corporate goal are hallmarks of successful leaders. These examples are what I continue to emulate and strive to attain throughout my career."

Despite the security of a long career in Singapore, Mr Teng left for the Middle East in 2014 to take up a position he had been hand-picked for from a global pool of regulatory elites; he had been chosen to lead the Financial Service Regulatory Authority of the Abu Dhabi Global Market (ADGM).

He recalled: "Then, as a Singaporean and Asian, the role to lead, to head, and to have the ability to chart new ground for a regulatory agency overseas was unprecedented.

"The opportunity to sculpt a financial centre from scratch, direct regulatory policies, and more importantly, create economic value and develop a financial intermediation hub in a new jurisdiction, were the key motivating factors for me to leave my home in Singapore. I relished being able to pioneer the development of a financial centre, drawing from my experience in the MAS and SGX."

While the relocation was a challenge initially, the opportunities to experience a new culture and way of life, and to make new friends and broaden his social circle and network internationally was invaluable.

At ADGM, an extremely supportive chairman and board of directors fully endorsed his vision and roadmap of building an international financial centre, and developing the financial ecosystem. "Fintech and sustainable finance were among my priorities at the time, and Abu Dhabi has spearheaded these sectors and now plays a leading role in them in the Middle East and Africa," he said.

Early fintech adopter

With the full commitment of organisational resources backing him, ADGM grew rapidly from the time it was started six years ago. It was one of the earliest regulators to embrace fintech, and has been a regulatory leader in the crypto space, having launched a framework for cryptocurrency activities designed to address the full range of risks associated with crypto-asset activities.

But spending a lot of time on the road took a toll on Mr Teng's health, which deteriorated as a result of constant travel across continents and time zones, often in the span of days.

He recalled a time when, after having been travelling to several destinations over two months, he vomited all through a 16-hour flight to the US. "Dehydration and slight hallucinations were what I recall most memorably. Despite being ill, I had to chair meetings immediately upon landing as those were already arranged, and continued to do so while recovering," he said.

Ironically, the Covid-19 global lockdowns have given him the time to recuperate, focus on fitness and improving his health.

In the few short months since his return in April, he had received "various executive role proposals". He picked Binance Singapore after asking himself whether he could add value to the organisation, and whether he would have fun doing so.

"As CEO of Binance Singapore, I will be working with a very talented team to further our business growth in a responsive and sustainable manner, by meeting the needs of investors, adhering to best practices and complying with regulatory standards," he said.

His first vivid memory of his childhood was of his home - a small rental flat in Old Airport Road. The family moved twice before settling in a four-room HDB flat. His parents worked in Malaysia for some years to provide a better life for the family, but their absence meant he had to live independently and alone from the age of 14.

"Those carefree years represented uninhibited freedom...playing truant, being absent from school and getting away with trouble - those were the hallmarks of my days in Temasek Secondary School.

"You would never have imagined that I would one day become the chief regulatory officer of the SGX and the CEO of the Financial Services Regulatory Authority in Abu Dhabi."

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