Binance Advising Nations On Strategic Bitcoin Reserves, Crypto Regulation: Report

Crypto exchange Binance is now actively assisting several countries in drafting crypto regulations and establishing national digital asset reserves, according to CEO Richard Teng.

What Happened: The move comes amid shifting global sentiment following the United States' more favorable stance on cryptocurrencies under President Donald Trump, the Financial Times reported on Thursday.

"Compared to many other jurisdictions, [the US] are way ahead on that front," Teng said in an interview, pointing to recent American plans to create a legal framework for digital assets and build a strategic reserve of Bitcoin.

This policy shift has prompted other nations to seek guidance from Binance.

Teng said the exchange has been "approached by quite a lot" of governments requesting help with their regulatory frameworks.

While he declined to name specific countries, both Pakistan and Kyrgyzstan recently confirmed they are working with Binance founder Changpeng Zhao to shape local crypto policies.

The surge in demand for regulatory advice comes despite Binance's recent legal troubles.

In 2023, the exchange pleaded guilty to charges related to money laundering and violating international sanctions, paying over $4.3 billion in penalties.

Zhao stepped down as CEO and later served a four-month prison sentence.

Under new leadership, Binance has implemented structural reforms, with nearly 25% of its 6,000-strong workforce now dedicated to compliance.

The United States has also placed Binance under a five-year compliance monitoring program led by the Financial Crimes Enforcement Network.

Teng said the company's internal changes have made it "a form and shape that regulators appreciate much more compared to the past."

Also Read: Panama City Council Now Accepts Bitcoin, Ethereum For Taxes, Fines, Fees

Why It Matters: Binance's evolving regulatory role is complemented by its involvement in helping countries establish crypto reserves.

Teng noted growing interest from sovereign wealth funds and national governments in building strategic holdings of digital assets.

"We have actually received quite a number of approaches," he said.

Trump's administration has contributed to this momentum.

Last month, the U.S. announced the formation of a national Bitcoin (CRYPTO: BTC) reserve using assets seized by law enforcement, now totaling approximately $17.1 billion on Coinbase (NASDAQ:COIN), according to Arkham.

However, the announcement disappointed some market participants who had anticipated large-scale government purchases to boost demand.

Although Bitcoin reached an all-time high of $108,000 after Trump's election win, the asset has since dropped over 15% amid concerns about his aggressive tariff policies.

Still, proponents of a bitcoin reserve argue it can serve as a hedge against fiat currency debasement, positioning bitcoin as a modern-day "digital gold."

The return of Trump to the White House has also altered Binance's standing in the U.S. market.

Teng confirmed that the SEC had paused its investigation into Binance and its U.S. affiliate, and that talks toward a potential resolution were underway.

Trump-affiliated entities are also deepening ties with Binance.

World Liberty Financial, a crypto initiative associated with the Trump family, is planning to launch a stablecoin using Binance's blockchain infrastructure.

As Binance works to rebuild trust and credibility, Teng said the company is "working very hard" on choosing a location for a global headquarters, an unprecedented step for the exchange, which has historically avoided a formal base of operations.

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