Binance's Leadership Restructuring: Strategic Implications for Crypto Market Dominance

The cryptocurrency landscape has long been defined by volatility, innovation, and the rise and fall of industry titans. Binance, once the undisputed leader in global trading volume, has navigated a turbulent post-Changpeng Zhao era marked by regulatory scrutiny, leadership shifts, and a recalibration of its governance framework. As of 2025, the exchange's strategic restructuring under co-CEOs Yi He and Richard Teng has sparked debates about its ability to retain market dominance while addressing lingering credibility concerns. This analysis evaluates Binance's governance evolution, operational resilience, and competitive positioning in a rapidly maturing crypto ecosystem.

Leadership Restructuring and Governance Overhaul

Binance's leadership transition began in earnest in 2024 following Changpeng Zhao's guilty plea to U.S. regulatory violations and subsequent four-month prison sentence. Richard Teng, a former Singaporean regulator, assumed the CEO role in late 2023, prioritizing compliance and institutional partnerships. In December 2025, the exchange announced a dual-leadership model, appointing co-founder Yi He as co-CEO alongside Teng. This move underscores Binance's dual focus: Yi He's institutional expertise in user experience and brand-building complements Teng's regulatory acumen.

The restructuring also extended to Binance France, where ownership was transferred to Yulong Yan and Lihua He to comply with EU rules prohibiting shareholders with criminal records. Such adjustments reflect a broader strategy to align with global regulatory expectations while mitigating reputational risks tied to Zhao's legal history.

Market Performance and Competitive Positioning

Despite these challenges, Binance has maintained its dominance in trading volume. In Q3 2025, the exchange captured 35.09% of global crypto trading volume, outpacing competitors like Coinbase and Kraken. Net inflows of $14.8 billion during the same period further solidified its market leadership. However, this volume-centric success contrasts with its governance metrics. Kaiko's Exchange Score ranked Binance sixth in Q3 2025 with a score of 79, trailing Kraken, Crypto.com, and others in categories like transparency and regulatory compliance.

This dichotomy highlights a critical tension in the crypto industry: while Binance continues to attract retail and institutional users with low fees and product innovation, its governance weaknesses-exacerbated by past legal missteps-undermine its appeal to risk-averse investors. The exchange's Proof of Reserves (PoR) initiative and expanded SAFU (Safe Asset Fund for Users) insurance buffers aim to address these concerns, but institutional trust remains elusive.

Governance Credibility and Institutional Trust

Binance's governance credibility has been further tested by ongoing legal battles, including the FTX lawsuit over a 2021 share-buyback deal. While the exchange has emphasized transparency in its post-Zhao era, its reputation faces an uphill climb. For instance, the Trump administration's pardon of Zhao in October 2024-a move framed as a boost for crypto-friendly policy-has complicated perceptions of Binance's ethical standing. Zhao's subsequent advisory roles in countries like Malaysia and Pakistan suggest a strategic pivot to geopolitical influence, but critics argue this distracts from core governance reforms.

Leadership statements in 2025 have prioritized rebuilding trust. At Binance Blockchain Week in Dubai, Richard Teng emphasized the exchange's commitment to "regulatory alignment and user-centric innovation," while interim CEO Norman Reed of Binance.US highlighted the need for a "clear U.S. regulatory framework" to sustain growth. These efforts align with broader industry trends, as institutional investors increasingly demand robust compliance frameworks and auditable operational practices.

Strategic Challenges and Future Outlook

Binance's long-term success hinges on its ability to balance growth with governance. The exchange's dual leadership model offers a structural advantage, combining Yi He's operational depth with Teng's regulatory expertise. However, three challenges loom large:
1. Regulatory Scrutiny: Binance remains under investigation in multiple jurisdictions, including the U.S. and EU. A misstep in compliance could trigger severe penalties.
2. Competitive Pressure: Rivals like Kraken and Coinbase are gaining ground in governance rankings, appealing to institutional clients prioritizing stability over volume.
3. Reputational Risks: Zhao's pardon and continued influence, while politically expedient, risk alienating stakeholders seeking a clean break from his legacy.

To mitigate these risks, Binance must accelerate its compliance roadmap, including third-party audits and expanded transparency measures. The exchange's 200 million active users represent a vast user base, but retaining this audience will require consistent governance improvements.

Conclusion

Binance's leadership restructuring under Yi He and Richard Teng marks a pivotal chapter in its post-Zhao evolution. While the exchange retains its volume leadership and operational agility, its governance credibility remains a work in progress. For investors, the key question is whether Binance can transform its compliance-focused rhetoric into tangible institutional trust. In a market where regulatory compliance and operational integrity are increasingly non-negotiable, the exchange's ability to reconcile its past with its future will determine its long-term dominance.