He Yi's Strategic Influence and Binance's Path to Sustainable Growth

The cryptocurrency exchange Binance has undergone a significant leadership transformation since 2023, marked by the appointment of co-founder He Yi as co-CEO alongside Richard Teng. This dual leadership model, formalized to navigate regulatory scrutiny and operational complexity, has positioned Binance to balance innovation with compliance. As the crypto industry matures, investors must assess whether He Yi's strategic focus on user-centric growth and Web3 expansion, combined with Teng's regulatory expertise, can sustain Binance's dominance and long-term viability.

Dual Leadership: A Strategic Rebalancing

Binance's decision to split executive responsibilities between He Yi and Richard Teng reflects a calculated shift toward institutional governance. He Yi, dubbed the "Internal CEO," oversees product development, marketing, and user engagement, while Teng, the "External CEO," manages regulatory affairs and global compliance according to reports. This division addresses a critical tension in Binance's post-Changpeng Zhao (CZ) era: retaining the agility of a founder-driven startup while meeting the demands of a regulated global market.

He Yi's appointment underscores her pivotal role in shaping Binance's culture and long-term vision. Known for her hands-on approach, she has emphasized innovation and customer trust as cornerstones of growth. Meanwhile, Teng's regulatory expertise has been critical in stabilizing Binance after a 2023 U.S. settlement and ongoing legal challenges, including a North Dakota lawsuit accusing the exchange of facilitating transactions for entities linked to Hamas and Hezbollah. The dual model, as noted by analysts, projects stability and institutional readiness, aligning with Binance's ambitions to expand into institutional markets.

Financial Performance: Growth Amid Challenges

Binance's financial resilience under this leadership structure is evident in its 2024 performance. The exchange reported $16.8 billion in revenue-a 40% increase from 2023-despite a 7% decline in net income to $464 million. This growth was driven by a record $7.3 trillion in annual trading volume and a user base of 280 million funded accounts. By Q3 2025, Binance maintained a 35.09% share of global trading volume, with spot trading volume surging 61.4% in July 2025 to $698.3 billion.

However, profitability remains a concern. The $4.3 billion fine imposed in 2023 and ongoing legal costs have pressured margins. Yet, Binance's ability to retain its market leadership-surpassing Coinbase in 24-hour spot volume-suggests that its user base and operational scale remain robust. He Yi's focus on cost-effective marketing and customer service has likely mitigated some of these pressures, though investors must weigh the risks of regulatory overhang against the exchange's growth trajectory.

Strategic Initiatives: Web3 and Regulatory Alignment

He Yi's strategic priorities highlight Binance's pivot toward Web3 infrastructure and sustainable innovation. The exchange has expanded its incubator, Binance Labs, to support decentralized applications (dApps) and blockchain projects, positioning itself as a hub for the next phase of crypto adoption. Simultaneously, the dual leadership model has enabled Binance to engage proactively with regulators, as seen in Teng's efforts to align with global compliance standards according to reports.

This duality-innovation and compliance-is critical for long-term viability. While Binance's dominance in trading volume and user base provides a strong foundation, its ability to navigate regulatory landscapes will determine its sustainability. He Yi's emphasis on "responsible global expansion" and investor protection signals a shift from the aggressive, founder-centric strategies of the CZ era to a more measured, stakeholder-focused approach.

Risks and Long-Term Viability

Despite these strengths, Binance faces headwinds. Regulatory scrutiny remains intense, with the North Dakota lawsuit and other investigations posing reputational and financial risks. Additionally, competition from rivals like Coinbase and Kraken, as well as decentralized exchanges (DEXs), could erode market share. However, Binance's first-mover advantage, brand loyalty, and He Yi's user-centric strategy provide a buffer.

For investors, the key question is whether Binance can maintain its growth while addressing regulatory challenges. The dual leadership model offers a plausible framework for this balance, but execution will be critical. He Yi's track record in fostering innovation and user trust, combined with Teng's regulatory acumen, suggests that Binance is better positioned than many peers to navigate this transition.

Conclusion

He Yi's strategic influence has redefined Binance's trajectory, steering it toward a model that prioritizes sustainability over short-term gains. While financial metrics like revenue and trading volume are encouraging, the exchange's long-term viability hinges on its ability to harmonize innovation with compliance. For investors, Binance represents a high-risk, high-reward opportunity: a dominant player in a volatile industry, now attempting to mature into a regulated, institutional-grade entity. If He Yi and Teng can sustain this balance, Binance may yet solidify its place as a cornerstone of the crypto ecosystem.