Binance, the largest crypto exchange in the world, has expanded its role as an advisor to governments establishing regulatory frameworks.
Binance & CZ Cement Roles as Key Crypto Advisors to Governments
26 June 2025 - 15:28 CEST
Speaking to the Financial Times earlier this year, Binance CEO Richard Teng said the company is assisting governments “with formulating their regulatory framework to govern crypto.” He went on to add that they have also “actually received quite a number of approaches by a few governments and sovereign wealth funds on the establishment of their own crypto reserves.”
“We have actually received quite a number of approaches by a few governments and sovereign wealth funds.”
Though the full extent of their activities may not be disclosed, examples include Kyrgyzstan, Pakistan, UAE and Ukraine.
Regulatory ambiguity
Binance rose to prominence at a time when crypto was not widely understood by policymakers. With no specific regulatory guidance or oversight, the industry, including Binance, found itself in a grey zone, detached from the rules of traditional financial markets. Governments and regulators ignored it or struggled to keep pace with the growth of crypto assets and businesses.
During the Biden presidency, that began to change, and the US emerged as a tough-on-crypto nation. In 2021, the US Department of Justice established a unit – later disbanded early in Trump's second term – centred around criminal misuse of digital assets and began to investigate and pursue charges against crypto companies – Binance included.
$4.3 billion settlement
In 2023, Binance reached a $4.3 billion settlement with the US DOJ related to among other charges anti-money laundering failures, which also included criminal charges against Binance founder and former CEO, Changpeng Zhao, who goes by his initials CZ. When it was announced, Merrick Garland, then US Attorney General, noted that the settlement was “one of the largest corporate penalties in US history.
When the news of the settlement was made public, Brian Armstrong, CEO of Coinbase, a Binance competitor, took the opportunity to remark that he hoped it would be a “catalyst" to improve the “lack of regulatory clarity” in the industry.
CZ resigned from the company in 2023 and received a four-month prison sentence in 2024. As part of his plea deal, it was specified that he will not hold any executive role or exert management control over Binance for at least three years.
Despite the conviction, CZ’s X page shows he maintains a strong relationship with Binance, and he remains a significant shareholder in Binance Holdings Ltd., though the exact amount is undisclosed.
Pakistan, Kyrgyzstan
Since the events of 2023 and 2024, both Binance and CZ have continued to play roles in the regulatory space.
Zhao’s latest government appointment, in April 2025, was as a strategic advisor to the Pakistan Crypto Council, the country’s recently formed regulatory body.
In the same month, Kyrgyz president Sadyr Zhaparov also announced the signing of an MoU with CZ, for his assistance with the “development of the cryptocurrency and blockchain technology ecosystem in the Kyrgyz Republic.”
“I officially and unofficially advise a few governments on their crypto regulatory frameworks”
The Pakistani Ministry of Finance has said that CZ will be advising and giving direct input on “regulation, infrastructure, education, and adoption” for crypto in the country. Soon after CZ’s appointment as an advisor, Pakistan announced an allotment of 2000mW of electricity to power bitcoin mining and data centres.
On the same day as the Kyrgyz announcement, CZ posted on X: “I officially and unofficially advise a few governments on their crypto regulatory frameworks and blockchain solutions for gov efficiency.” The Kyrgyz president added that the MoU “includes providing infrastructural, technological support, technical expertise, and consulting services on cryptocurrencies and blockchain technologies, as well as implementing educational initiatives.”
On the Binance website, an official blog post also notes the signing of an MoU but does not mention CZ. The company calls it “a long-term, strategic collaboration.”
UAE, Ukraine
Binance has a longer relationship with Emirati officials in Dubai. The company signed an MoU with the Dubai World Trade Centre Authority (DWTCA) in December 2021 “to aid the development of progressive Virtual Asset regulations.” Richard Teng, then MENA head for Binance, stated "we are very happy to be part of that process, working very closely with the Dubai government.”
Most recently, a Ukrainian lawmaker has introduced a bill to establish a cryptocurrency reserve for the country. While the bill is just a proposal, and has yet to pass the Ukrainian parliament, there is already interest from Binance. The leader of the proposal, MP Yaroslav Zhelezniak, was reportedly already in talks with Binance’s regional head for Central and Eastern Europe, Kirill Khomyakov. After the draft bill was submitted, Khomyakov stated “This initiative will likely lead to greater clarity in the regulation of crypto assets in Ukraine, as the government will need to more clearly articulate its position on this issue.”
Compliance, transparency focus
Richard Teng, Binance CEO since November 2023, has placed a clear emphasis and focus on regulatory compliance and transparency.
In a post on X announcing his appointment to the CEO position in November 2023, he highlighted one of his top goals as “collaborating with regulators to uphold high standards globally that foster innovation while providing important consumer protections.”
“Binance is committed to working closely and collaboratively with regulators from around the world.”
It’s only been around 18 months since Binance pleaded guilty to the money laundering charges and breaching international financial regulations and sanctions. However, the pro-crypto Trump 2.0 has signalled a completely different attitude than the previous Biden administration, exemplified not only by Trump’s personal involvement in the crypto industry, but also by the SEC officially dropping its pending lawsuit against Binance in May of this year.
Though as part of the 2023 settlement, Binance “agreed to retain an independent compliance monitor for five years, whose mandate will include review and assessment of Binance’s sanctions compliance program.” And Binance still faces charges elsewhere in the world.
In France, investigators with the Paris public prosecutor’s office (JUNALCO) announced a judicial probe into the company on charges that include money laundering in connection with drug trafficking and tax fraud. In Australia, the local derivatives business of Binance is being sued by the Australian Securities and Investment Commission over denial of consumer protections and misclassification of customer accounts.
It's apparent that the that the lack of regulatory clarity has been an issue for crypto in the past, and it’s a must-have as the industry moves forward into the mainstream. The licences page on the Binance website opens with “Binance is committed to working closely and collaboratively with regulators from around the world.”
