Binance Transforms Into a Regulatory Adviser for Governments

Binance is transitioning to a regulatory-friendly approach, providing advisory support to governments on crypto policies. The firm has increased its compliance staff, reflecting its commitment to regulation. With changing U.S. crypto policies under Trump, Binance is seeking to re-enter the market and establish a headquarters. Legal challenges in several countries persist, but the company is expanding its political influence globally.

Binance is transforming its approach to regulation by transitioning from a notorious outlier to an influential policy adviser to governments globally. CEO Richard Teng states that the company is now assisting various governments in shaping their cryptocurrency regulations, reflecting significant policy change for Binance.

Binance has experienced a remarkable shift in its business model; it now employs around 25% of its 6,000 staff in compliance roles. This increase in compliance personnel underscores the firm’s commitment to regulatory adherence, as noted by Teng, who claims they have a regulatory framework that appeals to governments.

The recent changes in U.S. cryptocurrency policy under President Trump, particularly the aim to establish a national Bitcoin reserve, have created new opportunities for Binance. According to Teng, the U.S. is leading in cryptocurrency oversight compared to other nations, making it a focal point for Binance’s advisory role. The company is currently in negotiations with the U.S. Treasury to smooth relations and potentially re-enter the U.S. market.

Binance is also contemplating establishing its first official headquarters, marking the end of its stateless operation phase that previously allowed it to navigate around certain regulations. Teng remarked that the company is exploring options for this potential base as a serious consideration.

Despite its new regulatory focus, Binance continues to face legal challenges worldwide. Spanish authorities have raised criminal charges regarding investor misappropriation, while French officials are still investigating potential violations of anti-money laundering regulations. In the U.S., Binance is under a five-year surveillance programme by FinCEN to ensure compliance. Furthermore, the company’s founder Changpeng Zhao is now advising on blockchain policy in Pakistan, enhancing Binance’s influence in emerging markets.