Binance, the world’s largest cryptocurrency exchange by trading volume, has reached a significant milestone with 250 million registered users.

This achievement solidifies Binance’s position as a market leader, supported by a 24-hour trading volume of approximately $17 billion. In contrast, competitors such as Bybit and Coinbase reported $5.3 billion and $3.6 billion in trading volume, respectively.

Regulatory Hurdles in 2024

Despite Binance's dominating performance, 2024 has been a tumultuous road for the exchange platform.

In the U.S., the Securities and Exchange Commission (SEC) accused Binance of securities violations, severely impacting its American arm, Binance.US. By March 2024, the exchange had suffered a 75% revenue drop and laid off over 200 employees, accounting for two-thirds of its workforce.

Furthermore, Binance’s co-founder, Changpeng Zhao (CZ) was accused of money laundering, and was sentence to six-months in prison. He was also forced to step down from his position as the CEO of Binance.

Globally, the company faced additional scrutiny. In Australia, the Australian Securities and Investments Commission (ASIC) accused Binance of failing to provide adequate consumer protections.

Meanwhile, Nigerian authorities initiated legal action against the exchange for allegedly operating unlawfully. These issues highlight the challenges of navigating compliance across diverse regulatory frameworks while maintaining global operations.

The passing of the baton to the next leader

After stepping down, Binance appointed Richard tend as the new CEO of the company, signaling a renewed focus on compliance and governance. Teng emphasized the company’s long-term vision, stating:\

“It’s really about building a sustainable enterprise that will not only succeed over the next few years but continue to prosper for the next 50 to 100 years. That’s certainly our aspiration.”

The milestone of 250 million users underscores the enduring relevance of centralized exchanges (CEXs) in driving mainstream crypto adoption. CEXs like Binance offer user-friendly interfaces and robust liquidity, making them accessible to a broader audience.

In contrast, decentralized exchanges (DEXs) like Uniswap and PancakeSwap enable peer-to-peer trading through blockchain protocols. While DEXs prioritize decentralization and privacy, they face challenges such as limited liquidity and complex user interfaces, which can deter less experienced users.

Looking Ahead

As Binance sets its sights on reaching 1 billion users by 2025, the exchange remains a pivotal player in the cryptocurrency landscape. Its ability to navigate regulatory complexities while driving innovation will play a crucial role in shaping the future of digital assets.

For now, Binance continues to lead the market, balancing its ambitious growth goals with the challenges of operating in an increasingly regulated global environment.