The world’s largest crypto by trading volume, Binance, continues to quietly advise several national governments on the best crypto regulations and how to create digital asset reserves. The Financial Times reported that Binance is helping several countries develop frameworks for cryptocurrencies and blockchain technology, and it is actively doing so.
This is a pivot in a company’s course that once took pride in skipping traditional financial oversight. But Binance had to reform its business practices and reestablish its reputation with stricter oversight of regulators worldwide after a high-profile legal case in 2023.
Crypto Goes Mainstream
Governments around the world have started showing interest in crypto and digital assets; Binance has become a policy consultant. He says their role with cryptocurrencies deeply entrenched in mainstream finance is a big factor that makes countries around the globe call on the blockchain industry for economic opportunities.
Many governments have approached the exchange for guidance on crypto rules and regulations, Richard Teng, who became Binance CEO in 2023, told the Financial Times. Specific countries seeking Binance’s counsel were not named, but Teng indicated that demand stretches far and wide as more places move to legalize and promote crypto adoption.
This government’s appetite for crypto oversight is rising as the United States’ attitudes shift. During the Trump administration, American regulators started forming formal requirements for digital tokens, laying the groundwork for innovations such as recurring crypto payments to become more viable. This created a propelling force for other countries to do the same as far as crypto is introduced into the regulation.
The U.S. is “way ahead on that front,” Teng remarked.
Rebuilding a Reputation
Binance’s new role as a policy consultant also represents efforts to rehabilitate the exchange’s image following intense legal scrutiny in America. In late 2023, Binance admitted to criminal charges related to money laundering activities and violating international sanctions.
Founder Changpeng ‘CZ’ Zhao resigned as CEO, was jailed for four months, and the company paid over $4.3 billion in penalties. Under a five-year compliance agreement with U.S. authorities, Binance agreed to be strictly monitored by the Financial Crimes Enforcement Network as part of its global operations.
The deal marked a turning point for Binance. Since then, the company has focused on regulatory compliance, and now one quarter of its 6,000 employees are in compliance-related roles. Binance’s change in philosophy has been reflected in the continual investments in compliance software, analytics, investigations, and auditing.
Ongoing Controversy
Despite Binance’s fresh focus on engaging regulators, not all government agencies perceive the company as fully aboveboard. French authorities continue to actively investigate Binance for potential money laundering and terrorism financing crimes from 2019 to 2024.
Binance firmly denies the allegations. The company promises to vigorously fight any formal charges brought against it.
Binance still carries a reputation hit from past compliance failures, according to the scrutiny from France. Its willingness to embrace crypto policymaking stands out, no matter how seemingly subtle that may be, given how secretive and resistant to oversight an exchange like OKEx has been in the past.
Advising Governments and Central Banks
One reason Binance has shifted toward greater transparency in recent years is to directly advise governments and central banks on crypto adoption. In addition to helping regulators from different countries develop digital asset rules, the company has been approached by regulators from different countries to see if there is a possibility of a national digital currency reserve that is backed by bitcoin or other cryptocurrencies.
Government interest extends beyond the post-Soviet region as well. According to CEO Richard Teng, Binance has received inquiries from central banks and sovereign wealth funds globally about establishing and managing new national reserves of digital tokens. The exchange is willing to provide its technical expertise to public institutions that are exploring this new asset class in acquiring, trading, custody, and settlement of crypto.
Evolving Crypto Regulations
Binance’s advisory role parallels ongoing developments around crypto regulations worldwide. Within modern finance, it is common to see that governing frameworks adapt with digital currencies seeping into the mainstream finance.
Anti-money laundering standards now frequently apply to cryptocurrencies, noted Rory Doyle, head of financial crime policy at compliance firm Fenergo.
“Crypto is becoming more mainstream, and firms are making money from legitimate business,” Doyle said, adding that regulatory compliance has become mandatory for crypto companies seeking long-term viability.
Nevertheless, full oversight in the jurisdictions still needs much work. Today, some countries, the US for one, are quite sophisticated in their crypto regulatory regimes. Most governments still lag behind very quickly evolving technologies and markets.
Market Volatility Amid Regulatory Efforts
Adding to the complexity is cryptocurrencies’ legendary volatility, which tests policymakers’ responses. Bitcoin values tend to fluctuate wildly, especially amid macroeconomic uncertainty.
Prices reached an all-time high above $108,000 in late 2024 after Donald Trump’s re-election seemingly buoyed investor sentiment. But bitcoin has since fallen nearly 10% throughout 2025 as doubts grow around Trump’s second-term agenda. Ongoing global trade tensions and risks of a U.S. recession continue fueling market uncertainty.
Such volatility demonstrates why some governments believe they may gain from holding strategic bitcoin reserves, but also carry risks. However, El Salvador went down in 2022 as the first country to adopt bitcoin as legal tender, but later dumped holdings once crypto lost its shine. It remains to be seen whether other state actors can develop more sustainable crypto reserve policies.
Conclusion: A Strategic Shift
Binance has emerged as an important guide for governments that are seeking to understand these rapidly evolving technologies, and cryptocurrencies are playing an increasingly important role in the global monetary system. According to its new advisory initiatives, the world’s top crypto exchange is changing the story—in the other direction—from trying to dodge regulators to forging a more sophisticated relationship with them.
Ongoing legal troubles still tarnish Binance’s reputation in certain jurisdictions. But its recent pivot toward transparency and compliance signifies changing attitudes under CEO Richard Teng.
As many governments follow the lead of the U.S. on crypto oversight, demand for Binance’s input on digital asset regulation and reserves appears high. Risks from a more volatile market are also present, but many countries can look forward to upside in terms of incorporating cryptocurrencies into their economic and financial systems.
The way Binance does that will not only determine how Binance works in the future but also how the whole blockchain industry will work in general. Now, as a policy consultant, you should understand that your decisions have implications much farther than the company’s bottom line.