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Journalist
Hassan Shittu
Journalist
Hassan Shittu
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Binance is treading cautiously in its approach to the U.S. market despite President Donald Trump’s perceived shift toward more crypto-friendly policies.
According to a Bloomberg report, CEO Richard Teng noted a “fresh reset and restart” in regulatory attitudes, which contrasted with the aggressive enforcement actions and “a bit of oppression” during President Joe Biden’s tenure.
However, Binance is holding back on any significant moves in the U.S., awaiting clearer guidelines.
This cautious stance follows the exchange’s costly $4.3 billion settlement over anti-money laundering violations, which led to its exit from the U.S. market in November 2023.
Binance’s leadership restructuring, including Teng’s appointment as CEO, laid the foundation for a potential reorganization to repair its reputation and redefine its global strategy.
A Strategic Retreat: Will Binance Come Back To The US?
Following the high-profile $4.3 billion settlement with U.S. authorities over anti-money laundering and sanctions violations, Binance halted its U.S. operations in November 2023.
The lawsuit accused Binance and its former CEO, Changpeng “CZ” Zhao, of mishandling customer funds, misleading regulators, and operating without proper licenses.
Zhao’s resignation and Richard Teng’s subsequent appointment marked the beginning of a leadership overhaul designed to restore credibility and stability.
Under Teng’s leadership, Binance implemented significant governance reforms, including establishing a board of directors to ensure a more structured and compliant operational model.
In KBW2024, he already noted significant investments in compliance to building a sustainable platform and mentioned Binance’s transition to “Binance 2.0” under his leadership.
In this latest remark, Teng emphasized the importance of regulatory clarity before considering a U.S. return and highlighted concerns over regulatory consistency and enforcement practices.
Despite seeing a “fresh reset” under the new administration, Binance remains cautious.
In fact, the exchange is evaluating multiple locations for its global headquarters. Although no location has been mentioned as he claimed it is “not as easy as just naming ‘oh, I want to pick this country.’ There’s a lot of considerations behind it.”
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This whole reformation to be compliance-oriented reflects the company’s strategic pivot towards global deployment over U.S. re-entry and a genuine effort to rebuild its reputation as a leading exchange globally.
Global Expansion Amid Uncertain Regulatory Change
CEO Richard Teng voiced concerns regarding local regulatory constraints, including trading limitations and licensing challenges, during the interview with Bloomberg at the Consensus crypto conference in Hong Kong.
Although Hong Kong has made strides toward crypto adoption, Binance has not applied for a license there, citing concerns about the regulatory environment’s suitability for its operations.
Additionally, these reformation efforts can be seen at Binance Labs. This venture capital arm spun off from Binance earlier this year, which announced plans to rebrand this year to reflect its evolving vision and to distance itself from the main exchange.
CZ, the former Binance founder permanently banned from leadership roles after serving four months in prison for regulatory violations, will lead the rebranded entity and engage directly with investment projects.
Binance Labs is also expanding its investment strategy to include secondary markets and OTC deals.
In 2024, Binance Labs invested in 46 projects, equally divided between infrastructure and application-focused deals, with notable investments in DeFi, AI, Bitcoin, and emerging fields like decentralized science.
Looking forward to this year, Binance Labs anticipates a favorable regulatory landscape under the pro-crypto Trump administration, potentially boosting institutional interest.
The firm plans to concentrate on blockchain, AI, and biotech innovations while also eyeing a resurgence in underperforming sectors like gaming and privacy solutions as they advance to production stages.
