Binance Advising Nations On Building Bitcoin Reserves - Report

Binance, the worlds largest cryptocurrency exchange, is advising multiple governments on developing regulatory frameworks for digital assets and establishing national strategic bitcoin reserves, according to CEO Richard Teng.

In a recent interview with the Financial Times, Teng disclosed that the exchange has been approached by “quite a lot” of countries seeking assistance with formulating their crypto regulations.

US Policy Shift Spurs Global Interest in Crypto and Bitcoin Reserves

Richard Teng highlighted that the United States changing stance on cryptocurrency under the Trump administration is motivating other nations to explore similar policies.

According to the Binance CEO, the US is “way ahead” compared to many other jurisdictions in establishing a regulatory framework for digital assets and planning a national cryptocurrency stockpile.

Trump recently ordered the creation of a US strategic Bitcoin reserve and digital assets stockpile.

However, the announcement specified that it would only hold assets forfeited to American law enforcement authorities.

Data from Arkham Intelligence indicates the US currently controls approximately $17.1 billion worth of Bitcoin and other cryptocurrencies held on the Coinbase exchange.

Proponents of government Bitcoin reserves argue that such stockpiles could serve as alternatives to traditional currency reserves.

Some advocates describe Bitcoin as “digital gold” – an asset that cannot be influenced by central bank policies or government monetary decisions.

The US government‘s changing approach toward Binance itself is also notable. The Securities and Exchange Commission has paused its investigation into Binance and its US arm following Trump’s inauguration.

Teng mentioned that the two sides are working toward a potential resolution. He also stated that Binance has “benefited greatly in the past few months from the policies coming out from the US.”

Further illustrating this change, World Liberty Financial, a crypto project controlled by the Trump family, plans to launch a stablecoin that will use Binances blockchain as one of its main platforms.

Binances Transformation Following Regulatory Challenges

Binances new advisory role is a major change for the exchange, which has faced substantial regulatory hurdles recently.

In 2023, the company pleaded guilty to criminal charges and agreed to pay more than $4.3 billion in penalties to US authorities.

As part of the settlement, co-founder and then-CEO Changpeng Zhao stepped down, was replaced by Teng, and later served four months in prison.

The exchange continues to face scrutiny in other jurisdictions. Earlier this year, France deepened its investigation into Binance on suspicion of breaking European money laundering and terrorist financing laws between 2019 and 2024.

The company has denied these allegations and stated it will “vigorously fight any charges made against it.”

Teng emphasized the company‘s commitment to compliance, noting that nearly a quarter of Binance’s 6,000 employees now work in compliance functions.

He stated that the company was now “in a form and shape that regulators appreciate much more compared to the past.”

This month, both Pakistan and Kyrgyzstan announced that former CEO Zhao had begun advising them on developing crypto regulations and implementing blockchain technologies.

Binance Considers Establishing Global Headquarters

Teng also stated that the exchange is working very hard on plans to create a global headquarters for the exchange.

This would mean a major departure from the companys previous operational structure.

This was when former CEO Changpeng Zhao long insisted that the company had no formal home.

The Binance CEO stated that the decision on headquarters location requires “serious deliberation” and that the board and senior management “are spending a lot of time doing the evaluation.”

Teng expressed hope that the company would soon be able to announce their intentions on that.

This potential organizational change comes in line with the broader industry trends since cryptocurrency companies are slowly gravitating toward more traditional corporate structures to satisfy regulatory requirements around the world.

Rory Doyle, the chief of financial crime policy at compliance software company Fenergo, explained that anti-money laundering rules across the world have been rewritten over the last few years to cover cryptocurrency companies.

The context in the market for such reforms involves recent price volatility of Bitcoin. Following Trumps election, the cryptocurrency hit an all-time high of $108,000 per token, although the price subsequently dropped in the past few months.