TLDR
- Binance CEO Richard Teng reveals multiple countries are seeking to establish crypto national reserves following US example
- Binance is advising governments on crypto regulations and reserve creation despite pleading guilty to US criminal charges in 2023
- Nearly 25% of Binance’s 6,000 employees work in compliance as the company focuses on regulatory alignment
- The US under Trump has adopted a crypto-friendly stance, announcing a Bitcoin national reserve
- Multiple countries have approached Binance for guidance, though Teng declined to name specific nations
Binance, the world’s largest cryptocurrency exchange, is working with multiple governments to establish crypto regulations and national digital asset reserves. CEO Richard Teng revealed that many countries are following the United States’ lead in embracing cryptocurrency policies under President Donald Trump’s administration.
This development comes less than two years after Binance pleaded guilty to US criminal charges related to money laundering and breaching international financial sanctions. The company paid more than $4.3 billion in penalties as part of that settlement.
Teng told the Financial Times that the exchange has “been approached by quite a lot” of countries seeking help with developing regulatory frameworks. He declined to specify which countries Binance is currently collaborating with.
The CEO pointed to America’s pro-crypto developments as inspiration for other nations. “Compared to many other jurisdictions, [the US] is way ahead on that front,” Teng said.
Regulatory Focus After Legal Troubles
Binance has made major changes to its compliance efforts following its legal troubles. About 1,500 employees—nearly a quarter of its 6,000-person workforce—now work in compliance roles.
Teng emphasized that Binance will continue investing heavily in compliance. He stated the company is now “in a form and shape that regulators appreciate much more compared to the past.”
The increased focus on regulatory alignment comes after co-founder Changpeng Zhao stepped down as CEO in 2023. Zhao later served four months in prison related to the US charges.
France has recently deepened its investigation into Binance on suspicion of breaking European money laundering and terrorist financing laws. Binance has denied these allegations and pledged to “vigorously fight any charges made against it.”
National Crypto Reserves Gaining Momentum
A key area of Binance’s advisory work involves helping countries establish national strategic digital asset reserves. This follows Trump’s order to create a US strategic bitcoin reserve.
“We have actually received quite a number of approaches by a few governments and sovereign wealth funds on the establishment of their own crypto reserves,” Teng explained.
Trump’s cryptocurrency reserve announcement initially disappointed some traders. The US plan only includes assets forfeited to law enforcement authorities rather than new purchases.
The US currently controls bitcoin and other cryptocurrencies worth approximately $17.1 billion, held on the Coinbase exchange, according to data from Arkham Intelligence.
Global Shift in Crypto Acceptance
Bitcoin reached a record high of $108,000 following Trump’s election victory last November, though prices have fallen about 10% this year as market momentum faded.
Teng noted that Binance has “benefited greatly in the past few months from the policies coming out from the US. I think the sentiment has shifted a lot.”
The exchange is also working to establish a global headquarters. This would be a major shift from its previous approach, when former CEO Zhao insisted the company had no formal home.
“It requires serious deliberation and the board and the senior management are spending a lot of time doing the evaluation… and hopefully we are able to announce our intentions on that front,” Teng said.
Pakistan and Kyrgyzstan recently announced that former Binance CEO Zhao has begun advising them on developing crypto regulations. This indicates a growing interest in cryptocurrency framework development beyond traditional financial centers.
Rory Doyle, head of financial crime policy at compliance software group Fenergo, explained that global anti-money laundering rules have been updated to include cryptocurrency companies. “Money laundering is a $2tn-to-$3tn a year business and crypto is getting into line,” he said.
The US Securities and Exchange Commission has paused its investigation into Binance since Trump’s inauguration. The two sides are working toward a potential resolution, according to Teng.
World Liberty Financial, a crypto project controlled by the Trump family, plans to launch a stablecoin that will use Binance’s blockchain as one of its main platforms.
