Binance, which was once the epitome of a lawless cryptocurrency territory, is now positioning itself as a designer of the cryptocurrency future linked to regulated countries.
The exchange is expanding its global influence, thanks to the cryptocurrency-friendly changes in US policy under President Donald Trump.
Binance, from Regulatory Outlaw to Global Cryptocurrency Policy Shaper
Binance, once the representative of cryptocurrency that ignored regulations, is now emerging as a policy advisor to governments worldwide.
This is based on recent statements by CEO Richard Teng, who explained that the exchange is transforming its image into a trusted advisor in various jurisdictions.
In an interview with the Financial Times, Teng revealed that "quite a few" countries have requested help in designing their cryptocurrency regulatory frameworks.
According to Richard Teng, Binance now has a form that is "much more highly valued by regulators compared to the past". Reports indicate that about 25% of its 6,000 employees perform compliance roles.
Teng also confirmed that Binance is advising several countries on establishing strategic cryptocurrency reserves. This initiative mimics Trump's plan to establish Bitcoin as a sovereign reserve asset in the US.
"We have actually received quite a lot of approaches from some governments and sovereign wealth funds to establish their own cryptocurrency reserves." – Richard Teng, Binance CEO
The exchange's ambitions do not stop at policy advisory. Binance is exploring a global headquarters, which could potentially end its long-standing decentralized and stateless status.
"This requires serious consideration," Teng said, mentioning that the company's board and senior management are evaluating options.
Adding a political layer, World Liberty Financial, associated with Trump, plans to launch a stablecoin using Binance's blockchain. These moves will further connect Binance to the geopolitical cryptocurrency network. Teng succinctly summarized the company's changing destiny.
"We have benefited greatly from the policies coming out of the US in the past few months. I think the atmosphere has changed a lot." – Richard Teng, Binance CEO
As Binance's global role expands, founder and former CEO Changpeng Zhao (CZ) has recently become a blockchain policy advisor to Pakistan. This deepens Binance's governmental influence in emerging markets.
Trump's Crypto-Friendly Policy… Binance's New Beginning
Meanwhile, this dramatic transformation is occurring amid changes in US cryptocurrency policy under President Donald Trump. Recently, Trump has ordered national Bitcoin reserves and digital asset reserves.
This suggests that Trump's cryptocurrency conversion has sparked global interest in sovereign cryptocurrency strategies, with nations eyeing Binance as a potential manager.
"Compared to many other jurisdictions, [the US] is far ahead in that field." – Richard Teng, Binance CEO
These developments align with recent reports. Binance is also considering re-entering the US market and is in discussions to ease regulatory tensions with the US Treasury.
Meanwhile, the US Securities and Exchange Commission (SEC) has halted its investigation into Binance, indicating productive conversations are ongoing.
Despite this transformation, Binance is still under scrutiny, facing criminal charges in Spain for investor misappropriation. French authorities continue to investigate allegations of violating European anti-money laundering laws.
The US has imposed a five-year monitoring regime led by FinCEN to ensure continued compliance.
