Binance is advising multiple countries on crypto regulations and the establishment of national digital asset reserves, inspired by US policy changes. Following legal challenges, the company has significantly increased its compliance workforce. The narrative indicates a growing global acceptance of cryptocurrency, with various nations seeking to develop their regulatory frameworks.
Binance, the leading cryptocurrency exchange, is advising various nations on the development of crypto regulations and the establishment of national digital asset reserves, influenced by recent US policies. CEO Richard Teng noted that many countries are keen to follow the example set by the Trump administration, which has adopted pro-crypto measures, including the creation of a Bitcoin national reserve.
Despite facing significant legal challenges, including a guilty plea to US criminal charges in 2023 and penalties exceeding $4.3 billion, Binance has intensified its compliance efforts. Approximately 25% of its 6,000 employees are now dedicated to compliance roles, reflecting the company’s commitment to regulatory alignment under its revised leadership following the resignation of co-founder Changpeng Zhao.
Binance has seen a surge in inquiries from governments seeking assistance in formulating cryptocurrency policies. Although specific countries were not disclosed, Teng recognised the US as a leader in this area, suggesting its regulations serve as a blueprint for others. The influx of interest underscores a global trend toward establishing national cryptocurrency reserves, with numerous nations and sovereign wealth funds reaching out to Binance.
The United States currently holds around $17.1 billion worth of cryptocurrencies, managed through the Coinbase exchange. This considerable asset base stems from the forfeiture protocols employed by law enforcement rather than active acquisitions.
While the price of Bitcoin spiked dramatically following Trump’s election, it has since retracted about 10% this year. Nevertheless, Teng indicated that recent US policy changes have positively impacted Binance’s operations and market perception. Enhanced compliance measures, along with a prospective global headquarters, reflect a strategic shift for the exchange.
Further expanding its expertise, former CEO Zhao has begun advising nations like Pakistan and Kyrgyzstan on crypto regulatory frameworks. Additionally, updates to global anti-money laundering laws are aligning with the cryptocurrency sector, highlighting the increasing integration of digital assets into traditional financial systems. Notably, the SEC has temporarily halted its investigation into Binance, signalling a possible resolution while World Liberty Financial plans to launch a stablecoin leveraging Binance’s blockchain.
