Binance Reveals ‘Compliance First’ Strategy to Recover Market Share

Binance, the largest cryptocurrency exchange in the world, has outlined the steps to follow to recover its growth path.

Binance, the leading cryptocurrency exchange, has unveiled its strategy to regain its growth trajectory, revealing that its ultimate goal is to onboard outsiders into the crypto space. Despite the recent decline in Binance's market share, the exchange is shifting its focus away from direct competition.

Binance's 'Compliance First' Strategy Aims to Attract New Crypto Users

Binance, which recently pled guilty to violations related to the Bank Secrecy Act (BSA) and failure to register as a money-transmitting business, outlined its plan to recover its growth path at Binance Blockchain Week in Dubai.

Richard Teng, who succeeded crypto legend Changpeng "CZ" Zhao as CEO, highlighted that Binance's goal is not to compete with other crypto exchanges but to bring more people into the crypto space.

Teng explained that crypto adoption is still low, with less than 10% of the world's population owning crypto. He added that by creating a dynamic ecosystem that supports innovation and new use cases, the entire industry will benefit.

To achieve this objective, Teng emphasized the importance of compliance and revealed that Binance will continue to invest heavily in this area. He believes that compliance could be a key differentiating factor between large exchanges like Binance and smaller platforms, describing it as a "competitive differentiator."

Binance Incurred Over $200 Million in Compliance Costs Last Year

Binance's massive scale and global operations necessitate significant compliance efforts. Last year, the exchange incurred over $200 million in compliance costs, which Teng expects to remain at a similar level this year as adoption increases.

However, with the cryptocurrency industry set for a strong year in 2024, thanks to good macroeconomic conditions, a global reduction in inflation, central bank rate cuts, and the emergence of clear regulations, Teng anticipates these costs will continue to rise.

Teng concluded his remarks by highlighting Binance's goal of onboarding the next billion users into crypto, as the exchange currently serves over 237 million users globally.

Zhao, who was released in September after a four-month prison term, recently stated that he had no desire to return to Binance's leadership and was instead interested in exploring other opportunities and passions beyond the crypto exchange.

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