In 2023, Binance has started advising governments on cryptocurrency reserves and regulatory frameworks despite legal difficulties.
Consultations for Governments
Binance CEO Richard Teng stated to the Financial Times that the exchange has received approaches from several countries and sovereign wealth funds regarding establishing their own crypto reserves. He mentioned that Binance is assisting countries in formulating regulatory frameworks to govern cryptocurrencies.
Support in Creating Strategic Reserves
Teng noted that the interest in creating crypto reserves has increased following U.S. activity under President Donald Trump. He pointed out that this encouragement from the U.S. is inspiring other countries to follow suit.
Regulatory Changes Amid Pressure
In 2023, Binance faced significant regulatory pressures, including pleading guilty to charges related to money laundering and sanctions violations, resulting in over $4.3 billion in penalties. Reports also mention that Binance executives discussed the possibility of removing oversight from the U.S. Treasury regarding their compliance activities.
Binance's strategy of consulting governments on creating crypto reserves demonstrates a shift in their role on the global stage despite the legal challenges they face.
