Binance, a prominent crypto exchange, is actively engaging with countries worldwide to help shape their crypto regulations and establish national digital asset reserves. This initiative comes as Binance works to rebuild trust and credibility following a guilty plea to charges related to money laundering and sanctions violations. The company had previously announced their intentions to issue a stablecoin using the company’s blockchain infrastructure. True, it’s cozied up with World Liberty Financial, a crypto scheme tied to the Trump family.
Binance's efforts to assist countries in developing crypto regulations demonstrate a proactive approach to compliance and regulatory engagement. Further, they have been surprised by the number of governments who have approached them for help in developing their own regulatory frameworks. Currently, Binance is working in partnership with both Pakistan and Kyrgyzstan to develop local crypto policy frameworks and implement blockchain technology. Changpeng Zhao, the founder of Binance, is personally tied to each of these partnerships.
In scenes reminiscent of last decade’s General Motors saga, the company’s earnestness about compliance was belied by its structural changes on new leadership. Today, almost a full quarter of Binance’s 6,000-employee workforce is focused solely on compliance. The global crypto exchange now will exist under a five-year compliance monitoring program. The Financial Crimes Enforcement Network is spearheading this effort because of the exchange’s history of legal troubles. Binance paid over $4.3 billion in penalties.
More recently, Richard Teng, CEO of Binance Singapore, celebrated the advancements the United States has made in regulating crypto.
"Compared to many other jurisdictions, [the US] are way ahead on that front." - Richard Teng
The firm’s committed to assisting governments in developing their own national digital asset reserves. This stance illustrates its larger perspective for what role cryptocurrency should play in the new global economy. This step would go a long way to jump starting the broader public adoption of digital assets as well as creating initial familiarity and comfort level with the technology.
Binance's association with World Liberty Financial, a crypto initiative linked to the Trump family, adds another layer of complexity to the company's narrative. The full consequences of this linking are still playing out. What it illustrates is how fundamentally the crypto world is entangled with these traditional power structures.
"We have actually received quite a number of approaches," - Richard Teng
These approaches are very much of a piece with ARC governments asking for assistance in remaking their regulatory frameworks.
