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What is Binance? The companies, the regulators, the 2023 US guilty plea and BNB

Published 2026-10-14By the CryptoGuardz Register Desk6 min read15 sources

Photo: Kevin Dunlap / Unsplash

In short, from the documents

What is Binance?

Binance is a crypto exchange launched in July 2017 by Changpeng Zhao. Its terms, effective 21 July 2026, bind users to three Abu Dhabi Global Market companies. In 2023 Binance Holdings pleaded guilty to US anti-money laundering and sanctions charges and agreed to pay $4,316,126,163 to the DOJ. BNB is the native token of BNB Smart Chain.

Piece published 2026-10-14Reviewed by CryptoGuardz Register Desk, editorial desk

Binance is a cryptocurrency exchange that Changpeng Zhao launched in July

Its current terms, effective 21 July 2026, bind users to three companies registered in Abu Dhabi Global Market. In November 2023 Binance Holdings Limited pleaded guilty in the United States to anti-money laundering, unlicensed money transmission and sanctions charges and agreed to pay $4,316,126,163 to the Department of Justice. BNB is the token that pays for transactions on BNB Smart Chain and discounts Binance's fees by 25%.

Binance's own pages and the US agencies' releases were read on 14 October

Nothing here is investment advice, and nothing here says whether to buy BNB or use the exchange. The clause-by-clause entry is on Binance.

What is Binance, by its own description?

An exchange with a wider product set around it. Binance's about page calls it "the world's leading blockchain ecosystem", a marketing claim with no ranking method attached. The figures it publishes are its own: an average daily volume of $95 billion, and, in co-founder Yi He's biography, "250 million registered users by January 2025". Neither figure is audited on the page.

Leadership, per the same page: Richard Teng is "the Co-CEO of Binance", Yi He is "Co-CEO & Co-Founder", and Zhao is "Co-Founder & Former CEO".

Which companies run Binance?

For binance.com users without local terms, three companies in Abu Dhabi Global Market: Nest Exchange Limited, Nest Clearing and Custody Limited and Nest Trading Limited. The terms give each one a registration number and say "Each ADGM Binance Entity is a separate legal entity." One runs the trading venue, one holds assets as custodian, one acts as broker-dealer, as recorded on the Binance entry on 28 September 2026.

Entity	Role	Where
Nest Exchange Limited	Trading venue	ADGM, UAE
Nest Clearing and Custody Limited	Custodian	ADGM, UAE
Nest Trading Limited	Broker-dealer	ADGM, UAE
Binance Holdings Limited	Pleaded guilty in 2023	Not disclosed in the terms
BAM Trading Services Inc.	Runs Binance.US	United States

The terms claim licences from the ADGM Financial Services Regulatory Authority for all three. The FSRA register was not loaded, so the licences are not verified. The ESMA MiCA register, downloaded 28 September 2026, contains no Binance entity.

Who regulates Binance?

The terms name the ADGM regulator. Outside that, the clearest regulatory record is American and is about enforcement, not licensing. Disputes under the terms go to arbitration at the International Chamber of Commerce under ADGM law. Users in a jurisdiction "listed in our List of Prohibited Countries" may not use the service.

A blue flag with a ring of yellow stars waving on a pole — Illustration only: the EU flag. The ESMA MiCA register read for this post lists no Binance entity; the terms name the ADGM regulator instead. Photo: Christian Lue / Unsplash

What did Binance plead guilty to in 2023?

On 21 November 2023 Binance Holdings Limited pleaded guilty to violating the Bank Secrecy Act, failing to register as a money transmitting business and violating the International Emergency Economic Powers Act. The DOJ release gives forfeiture of $2,510,650,588 and a criminal fine of $1,805,475,575, plus a three-year independent monitor. Deputy Attorney General Lisa Monaco said:

A corporate strategy that puts profits over compliance isn't a path to riches; it's a path to federal prosecution.

US Department of Justice press release, 21 November 2023, retrieved 2026-10-14

Justice Department Details $4.3 Billion Settlement With Binance | WSJ NewsVideo by WSJ News on YouTube. Watch on YouTubeWSJ News report on the Justice Department's $4.3 billion settlement with Binance, the plea this section quotes from the DOJ release.

Treasury announced a $3.4 billion FinCEN penalty and a $968 million OFAC settlement the same day, citing "more than 1.67 million virtual currency trades" with users in Iran, North Korea, Syria and Crimea, and requiring Binance's "complete exit from the United States". The CFTC added $2.7 billion in December 2023.

Zhao pleaded guilty to failing to maintain an effective anti-money laundering programme and resigned as chief executive. On 21 October 2025 he received an executive grant of clemency, listed by the Office of the Pardon Attorney under "United States v. Zhao, 23CR00179RAJ-001". On 29 May 2025 the SEC filed to dismiss its civil case against Binance, BAM Trading and Zhao with prejudice. The settlement figures are compared with Kraken's record in Kraken vs Binance.

What is BNB?

The native token of BNB Smart Chain. The chain's repository README says BNB "will serve as both the gas of smart contract execution and tokens for staking", and that the chain uses "21 validators with Proof of Staked Authority (PoSA) consensus". On the exchange, paying fees in BNB cuts the regular spot rate from 0.100% to 0.075%, which the fee schedule labels "BNB 25% off".

The chain is also a USDT route. Binance listed 18 USDT withdrawal networks with withdrawals enabled, including BNB Smart Chain, when the register read its network list on 28 September 2026. A deposit sent on a chain the receiving side does not support can be lost; see USDT networks.

Is Binance.US the same as Binance?

No. Binance.US is run by BAM Trading Services Inc. Its terms say BAM and Binance Holdings "share common majority ownership, but are not within the same corporate or management structure." It is unavailable in 16 US states and regions, including New York and Texas, and offers crypto-only accounts in Kansas and Wisconsin.

Does Binance publish proof of reserves?

Yes, self-signed. The page uses a Merkle tree and a zk-SNARK proof and says Binance "has funds that cover all of our users assets 1:1". No accountant or attestation firm is named, and the audit time and Merkle root fields were empty on the public page on 14 October 2026. Its terms describe client assets held on trust by the custodian as protected under ADGM rules on the custodian's insolvency. For anyone moving coins off the exchange, the seed phrase guide covers what self-custody involves.

Close view of stacked gold bars — Illustration only: gold bars. Binance's reserve page covers crypto balances and is self-signed, with no accountant named. Photo: Jingming Pan / Unsplash

Quick answers

What is Binance?

A crypto exchange launched in July 2017, now contracting through three Abu Dhabi Global Market companies under terms effective 21 July 2026. See Binance.

Is Binance legal in the US?

Binance.com must keep a "complete exit from the United States" under its 2023 Treasury settlement. Binance.US, a separate company, operates in most states but not 16 states and regions.

Who owns Binance?

The terms name three ADGM operating companies but not their owners. The about page lists Zhao as co-founder and former CEO; shareholdings are not disclosed there.

What is BNB used for?

Gas and staking on BNB Smart Chain, per its README, and a 25% discount on Binance spot fees, cutting 0.100% to 0.075%.

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Sources

About this piece

Compiled by the CryptoGuardz register team from the sources listed above. Research and drafting are AI-assisted and reviewed by a named editor before publication. Nothing here is a recommendation to gamble. If a figure or a reading is wrong, tell us and the correction is logged in public.