TLDR
- Binance CEO Richard Teng revealed the exchange is collaborating with countries interested in creating crypto national reserves
- The company is helping nations develop cryptocurrency regulatory frameworks, with nearly 25% of its 6,000 employees working in compliance
- Teng credits the US’s pro-crypto stance under Trump for encouraging other countries to follow suit
- This advisory role comes less than two years after Binance pleaded guilty to US criminal charges and paid $4.3 billion in penalties
- Several countries have approached Binance for help establishing national strategic digital asset reserves, though Teng declined to name specific nations
Binance, the world’s largest cryptocurrency exchange, is working with several countries to develop regulatory frameworks for digital assets and establish national strategic bitcoin reserves. CEO Richard Teng revealed this development in a recent Financial Times interview.
Teng stated that the United States’ crypto-friendly approach under President Donald Trump has motivated other nations to take similar actions. “Compared to many other jurisdictions, [the US] is way ahead on that front,” Teng told the Financial Times.
The exchange has “been approached by quite a lot” of countries seeking help with formulating regulatory frameworks to govern cryptocurrency. Teng declined to identify which countries the firm is currently working with.
From Legal Troubles to Government Advisor
This advisory role comes less than two years after Binance faced serious legal issues. In 2023, the exchange pleaded guilty to US criminal charges related to money laundering and breaching international financial sanctions. The company agreed to pay more than $4.3 billion in penalties.
Following the settlement, co-founder and former CEO Changpeng Zhao stepped down and was replaced by Teng. Zhao later served four months in prison for his role in the violations.
Earlier this year, France deepened its investigation into Binance on suspicion of breaking European money laundering and terrorist financing laws between 2019 and 2024. Binance has denied these allegations and stated it will “vigorously fight any charges made against it.”
The US also imposed a five-year monitoring program on the exchange to ensure compliance, overseen by its Financial Crimes Enforcement Network. This program went into effect last year.
Building Compliance Infrastructure
Teng emphasized that nearly a quarter of Binance’s 6,000 employees now work in compliance, and the company plans to continue investing heavily in this area. He stated that the company is now “in a form and shape that regulators appreciate much more compared to the past.”
Recently, both Pakistan and Kyrgyzstan announced that former CEO Zhao had begun advising them on developing crypto regulations and implementing blockchain technologies.
According to Rory Doyle, head of financial crime policy at compliance software group Fenergo, global anti-money laundering rules have been updated in recent years to include cryptocurrency companies. “Money laundering is a $2tn-to-$3tn a year business and crypto is getting into line,” he said.
National Crypto Reserves Gaining Traction
Teng revealed that Binance is helping multiple countries set up national strategic digital asset reserves. “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,” he said.
This comes after Trump ordered the creation of a US strategic bitcoin reserve and digital assets stockpile last month. The US plan will only hold assets that have been forfeited to the country’s law enforcement authorities.
Currently, the US controls bitcoin and other cryptocurrencies worth approximately $17.1 billion, held on the Coinbase exchange, according to data company Arkham Intelligence.
Bitcoin surged to a record high of $108,000 per token following Trump’s election victory in November. However, the price has dropped 10 percent this year as momentum faded and investors sold risky assets due to concerns about Trump’s aggressive tariff policies.
Supporters of a bitcoin reserve argue that the US should build a stockpile that could serve as an alternative to the dollar. Bitcoin proponents often compare it to “digital gold” as an asset that cannot be devalued by central banks or government policies.
The political climate shift has been favorable for Binance. The US Securities and Exchange Commission paused its investigation into Binance and its US arm after Trump’s inauguration. The two sides are working toward a potential resolution, according to Teng.
Teng stated 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 CEO also mentioned that Binance is “working very hard” on plans for establishing a global headquarters for the exchange. This would mark a departure from its past structure, as former CEO Zhao long 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.
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