Binance's Transition to Governance Stability and Growth Under He Yi's Leadership

The cryptocurrency exchange landscape has long been defined by volatility, regulatory uncertainty, and the influence of charismatic founders. Binance, once synonymous with Changpeng "CZ" Zhao's aggressive expansionism, faced a seismic shift in 2023 when its co-founder was imprisoned. Yet, under the stewardship of co-founder Yi He, the platform has navigated this crisis with a blend of strategic recalibration and operational rigor, positioning itself as a model of resilience in a post-CZ era. This analysis examines Binance's governance reforms, financial performance, and regulatory adaptability under He Yi's leadership, offering insights into its long-term viability as an investment.

Governance Reforms: From Chaos to Clarity

Yi He's leadership has been marked by a deliberate pivot toward institutional credibility and regulatory alignment. Following CZ's departure, she orchestrated a leadership reshuffle, appointing Richard Teng-a former Singapore financial regulator-as CEO in 2023. This move signaled Binance's commitment to bridging the gap between decentralized innovation and traditional finance. Teng's background in regulatory frameworks has been instrumental in overhauling corporate governance, including the establishment of stricter KYC (Know Your Customer) and AML (Anti-Money Laundering) protocols.

He Yi's strategic vision has also prioritized geographic diversification. By leveraging Dubai as a global hub, Binance has expanded its footprint in the Middle East and Europe, regions where regulatory frameworks are evolving but not yet as hostile as in the U.S. or parts of the EU. This geographic pivot has not only diversified revenue streams but also insulated the platform from jurisdictional risks tied to any single market.

Financial Resilience: Metrics That Matter

Binance's financial performance in 2024-2025 underscores its operational resilience. Despite a 7% decline in net income to $464 million in 2024, the platform achieved a 40% year-on-year revenue increase, generating $16.8 billion in total revenue. This growth was driven by a 30% share of the global crypto exchange revenue market, with $7.3 trillion in annual trading volume. User growth metrics further highlight Binance's appeal: as of October 2024, the platform reported 25 million funded accounts, with projections of 30 million by year-end.

Compliance as a Strategic Advantage

Binance's post-2023 compliance overhauls have been both defensive and proactive. The platform banned over 600 accounts for trading bot misuse in 2024, a move that reinforced market integrity and aligned with Yi He's vision of compliance as a competitive edge. Additionally, Binance incentivized users to report suspicious activities, offering up to 50% of reclaimed profits from banned accounts-a community-driven approach that strengthened trust.

These measures have been complemented by infrastructure investments. Binance's Proof of Reserves (PoR) initiative, launched in 2025, provided transparent verification of its $51.1 billion stablecoin reserves, addressing liquidity concerns that had plagued the industry post-2022. Such transparency has been critical in retaining user confidence during market corrections, as evidenced by Binance's record $25 billion in spot trading and $62 billion in futures volume during the October 2025 downturn.

Navigating Regulatory Landscapes: EU and U.S. Challenges

Binance's regulatory journey remains complex, particularly in the EU and U.S. In the EU, the platform faces a fragmented landscape but has a clearer path under the MiCA framework, which allows cross-border operations once authorized in one member state. However, restrictions in countries like the Netherlands and Belgium persist, reflecting the EU's cautious approach to crypto adoption.

The U.S. presents a steeper challenge. Binance exited the U.S. market in 2024, launching Binance.US to comply with domestic regulations. While the platform faces ongoing investigations, the SEC's streamlined approval process for crypto ETFs-expected to accelerate in Q4 2025-offers a potential avenue for re-entry. Yi He's strategic patience here is evident; she has prioritized long-term alignment with U.S. regulators over short-term gains, a stance that mirrors her broader philosophy of "building step by step."

Market Resilience and Future Outlook

Binance's resilience extends beyond compliance. In 2025, the platform maintained an AA rating in both spot and derivatives markets, reflecting its deep liquidity and robust infrastructure. Its global user base of 250 million registered accounts and $14.8 billion in Q3 2025 net inflows further underscore its market dominance.

Looking ahead, Yi He's focus on stablecoins and institutional integration aligns with macroeconomic trends. As the U.S. contemplates the GENIUS Act and the EU refines MiCA, Binance's regulatory agility positions it to capitalize on emerging opportunities. Her vision of bringing crypto to 1 billion users-a goal once dismissed as aspirational-now appears increasingly plausible given the platform's infrastructure and user growth trajectory.

Conclusion: A Model for Crypto's Next Phase

Binance's transition under He Yi's leadership exemplifies how strategic governance, financial discipline, and regulatory adaptability can transform a crisis into an opportunity. While challenges in the U.S. and EU persist, the platform's operational resilience and institutional credibility have solidified its position as a leader in crypto's next phase. For investors, Binance's journey offers a compelling case study in navigating the intersection of innovation and regulation-a space where long-term vision often trumps short-term turbulence.