As the U.S. Embraces the crypto industry, more countries are considering a similar approach—and the world’s largest crypto exchange is helping them do it. Binance is advising several governments on developing regulations for crypto and creating their own national Bitcoin reserves, the Financial Times reported on Thursday.
The company has “been approached by quite a lot” of countries seeking for help to develop regulatory frameworks to govern the industry, Binance CEO Richard Teng, told the Financial Times. However, Teng declined to say which countries Binance is working with, the report said, and didn’t mention any other companies or groups that are also advising policymakers.
Teng added that the company is also assisting some countries with creating strategic crypto reserves like the one President Trump established in the U.S. Last month. “We have actually received quite a number of approaches by a few governments and sovereign wealth funds on the establishment of their own crypto reserves,” Teng told the Financial Times.
National crypto reserves refers to a government-owned stockpile of Bitcoin or another cryptocurrency that is aimed at diversifying the government’s holdings and hedge against inflation. However, some people argue that a Bitcoin stockpile is risky because the currency’s price can be volatile, with a single token losing or gaining thousands of dollars within the span of a few hours.
A Binance spokesperson declined to share any additional information with Coins2Day about the talks, saying, “We don’t disclose details of our conversations with governments and regulators.”
Teng said that he believes the U.S. Government’s shift in favor of crypto-friendly regulation is the catalyst for broader acceptance of the asset class around the world. “Compared to many other jurisdictions, [the US] are way ahead on that front,” Teng told the Financial Times.
Binance is taking on the role as an advisor for multiple countries months after finding itself in legal trouble in the U.S. The company had to pay more than $4.3 billion in fines after pleading guilty to charges related to money laundering in 2023. Then-CEO of Binance, Changpeng Zhao, also pled guilty to related charges and resigned before serving four months in jail.
Teng told the Financial Times that the firm has invested heavily in compliance efforts and will continue doing so, adding that Binance is now, “in a form and shape that regulators appreciate much more compared to the past.”
Since Binance was charged in the U.S, the federal government has changed its tune on crypto. Trump has made supporting the industry a major part of his platform, taking several steps to make America the “crypto capital of the world.” Since taking office in January, the president has held a crypto summit at the White House, supported the advancement of stablecoin legislation, and established a national Bitcoin reserve.
