Crypto exchange Binance is remodeling its attitude toward regulation, flipping the script on its former notoriety as a pain in the neck of sorts to a role as an insider policy adviser to governments worldwide. The organization currently advises governments in several countries on crypto policy, recent quotes by CEO Richard Teng report.
From Rule-Breaker To Policy Consultant
“We have received in fact a significant number of proposals by several governments and sovereign wealth funds to set up their own crypto reserves,” Teng said in a recent interview with the Financial Times.
The CEO said that Binance now has a framework “that regulators like much more than before.”
This shift represents a dramatic turnaround for a business previously infamous for evading regulation. Now, nearly 25% of Binance’s 6,000 staff are compliance employees, indicating just how committed the business is to playing by the book.
Trump Administration Creates New Opportunities
The shift follows US crypto policy evolution under US President Donald Trump. His recent directive to establish a national reserve of Bitcoin has set the world abuzz with interest in cryptocurrency policy. Most nations now turn to Binance for guidance.
“Compared to many other jurisdictions, [the US] is way ahead on that front,” Teng said.
Binance is now negotiating with the US Treasury to de-escalate tensions as it contemplates a return to the American market. The US Securities and Exchange Commission has suspended its investigation of the company amid these negotiations.
Binance Considers First Official Headquarters
Following years of operating without a home base, Binance is considering opening a global headquarters. That would bring its stateless period to an end, which helped it skirt around certain regulations previously.
“It demands serious consideration,” said Teng. The board and senior leadership at the company are currently mulling over options for where they can open up this base.
The firm is also increasing its political reach. Trump-supporting crypto project World Liberty Financial is set to release a stablecoin on Binance’s blockchain, which would further tie the exchange to political circles.
Legal Challenges Still Remain In Several Countries
Even with its new path, the crypto exchange hasn’t left its history entirely behind. Spanish authorities have lodged criminal charges against the exchange for the misappropriation of investors. French officials continue to probe suspected breaches of European anti-money laundering rules.
At home in the United States, Binance is subject to a five-year surveillance program at the hands of FinCEN to guarantee continued adherence to regulations.
At the same time, Binance founder and former CEO Changpeng Zhao (CZ) recently became an adviser to blockchain policy in Pakistan, further spreading the company’s reach in emerging markets.
Featured image from MakeUseOf, chart from TradingView
