Binance

Binance is one of the world’s largest centralized cryptocurrency exchanges by trading volume, offering spot, derivatives, and earning products to a global retail and institutional user base. Founded in 2017, the company has expanded into a broader ecosystem that includes a venture arm, an educational platform, and the BNB blockchain network, anchored by its native asset BNB.

Overview

Binance operates a multi-product platform that provides access to hundreds of digital assets, ranging from large-cap cryptocurrencies such as Bitcoin and Ethereum to smaller altcoins. The core exchange supports spot trading, margin trading, and a wide range of futures and options contracts, complemented by passive yield products, staking, and savings offerings.

In addition to trading services, Binance runs initiatives such as Binance Labs (its venture and incubation arm), Binance Academy (an educational portal), and institutional services including custody and off-exchange settlement. The company serves users in over 100 countries through a distributed operational model rather than a single declared global headquarters, and it has launched or supported region-specific platforms in certain jurisdictions.

History and Background

Binance was founded in July 2017 by Changpeng Zhao (commonly known as CZ) and Yi He. Initially operating from China, the company shifted operations in response to evolving domestic regulation and subsequently adopted a more decentralized corporate structure, with significant operations across Asia, Europe, and the Middle East.

The exchange grew rapidly during the 2017–2021 bull markets, becoming a dominant venue for spot and derivatives trading and launching its own ecosystem token, BNB, via an exchange offering. Over time, Binance added new businesses including a charity initiative, research unit, and venture investments, while also acquiring or launching related products such as non-custodial wallets and regional exchanges.

From 2021 onward, Binance became a central focus of regulatory scrutiny. In November 2023, the company and its then-CEO CZ entered into a multi-agency settlement with U.S. authorities, with Binance pleading guilty to violations related to anti-money laundering and sanctions controls and agreeing to a multibillion-dollar penalty. CZ stepped down as CEO as part of the resolution. In November 2023, Richard Teng, a former financial regulator and regional executive at Binance, was appointed CEO. In 2025, the exchange introduced a dual leadership structure by naming co-founder Yi He as co-CEO alongside Teng, formalizing her long-standing operational role.

BNB, BNB Chain, and the Broader Ecosystem

BNB is the native asset of the Binance ecosystem and the BNB Chain network. Initially launched as a fee-discount token, BNB has evolved into a multi-purpose asset used for transaction fees, on-chain activity, and participation in ecosystem products. CryptoSlate tracks BNB in its dedicated asset page at BNB.

BNB Chain (formerly Binance Chain and Binance Smart Chain) is a smart-contract–enabled blockchain ecosystem that supports decentralized applications and a wide range of tokens, summarized in CryptoSlate’s Binance Chain tokens sector view. The chain has become a major venue for DeFi, NFTs, and gaming projects, with BNB serving as the gas token. At the same time, BNB Chain has faced criticism around centralization, validator concentration, and security incidents, leading to an ongoing focus on technical upgrades and governance design.

Regulatory Environment and Compliance

Binance’s scale and global reach have placed it at the center of regulatory debates around centralized exchanges. Authorities in multiple jurisdictions have investigated or restricted aspects of its operations, prompting the exchange to implement enhanced compliance programs, licensing efforts, and localized entities where required.

The 2023 U.S. enforcement actions and plea agreement, which included one of the largest corporate penalties in the crypto sector, marked a turning point in Binance’s public compliance posture. In the years since, the company has emphasized increased investment in compliance staff, know-your-customer (KYC) controls, and transaction monitoring, while seeking licenses or approvals in various markets. In 2025, regulators in Abu Dhabi granted Binance a global license under the Abu Dhabi Global Market framework, highlighting the exchange’s efforts to operate under more formal regulatory regimes even as it continues to navigate ongoing scrutiny elsewhere.

Use Cases and Market Position

Binance is primarily used by traders, market makers, and long-term investors seeking access to deep liquidity, a wide asset list, and a broad range of derivatives and structured products. Its scale makes it a key venue for price discovery and market depth in many trading pairs, and its launch programs have helped bring attention and capital to emerging projects.

Beyond trading, Binance’s ecosystem touches retail payments, cross-border transfers, and Web3 infrastructure through BNB Chain and associated services. For many users, Binance functions as a gateway into crypto markets; for projects, it can serve as both a liquidity venue and a distribution channel.

Risks and Considerations

As a centralized exchange and large corporate group, Binance concentrates operational, custody, and counterparty risk. Users who leave assets on the platform rely on the company’s security practices, internal controls, and legal compliance. While Binance maintains reserves and has historically reimbursed users after certain incidents, centralized platforms do not eliminate the risk of loss from security breaches, mismanagement, or legal actions.

Regulatory risk remains a key consideration. Past enforcement actions, ongoing monitoring obligations, and differing rules across jurisdictions can affect product availability, regional access, and the company’s cost structure. In addition, BNB and BNB Chain carry their own technical and regulatory risks related to smart contract security, validator participation, and potential classification of certain tokens or features under securities or other financial regulations.

For market participants, Binance is a central infrastructure provider in the digital asset ecosystem, combining significant liquidity and product depth with a complex regulatory profile. Its evolution—both in terms of compliance and technology—continues to shape the broader centralized exchange and BNB Chain landscapes tracked by CryptoSlate.