Yi He and Binance's Resilient Growth: A Case for Strategic Investment in Crypto Infrastructure

In the volatile world of cryptocurrency, few stories are as compelling as Binance's post-2023 transformation under co-founder Yi He. After the imprisonment of Changpeng Zhao (CZ) in 2023 and a $4.3 billion settlement with U.S. regulators, Binance faced existential questions about its leadership and compliance. Yi He, however, has emerged as a stabilizing force, steering the exchange toward a future defined by infrastructure innovation, regulatory pragmatism, and ecosystem-driven value creation. For investors, this represents a rare case study in resilience-and a potential blueprint for long-term success in crypto.

Leadership Continuity: From Crisis to Steady Governance

Yi He's rise to prominence at Binance began in 2022 when she was appointed head of Binance Labs, the exchange's venture capital and incubation arm. By 2023, as CZ navigated legal challenges, Yi He took on an unofficial leadership role, prioritizing corporate governance reforms. She oversaw the promotion of Richard Teng, a former Singapore financial regulator, to CEO and added independent directors to the board, signaling a shift toward institutional credibility. These moves were not just symbolic; they addressed core regulatory concerns about Binance's lack of oversight. As of 2025, Binance's board includes experts in compliance and finance, a structural change that has attracted institutional investors and restored trust in the platform.

Yi He's leadership style emphasizes continuity and adaptability. Unlike CZ's hands-on operational approach, she has focused on long-term strategy, particularly in infrastructure and global expansion. Her ability to balance Binance's founder-driven culture with regulatory expectations has been critical. For example, she has publicly emphasized "good communication with regulators" as a competitive advantage, a stark departure from the exchange's earlier confrontational stance. This shift has allowed Binance to maintain its dominance in a market where trust is increasingly tied to compliance.

Regulatory Adaptation: Compliance as a Strategic Asset

Binance's post-2023 regulatory challenges were severe. The U.S. Department of Justice accused the exchange of violating anti-money laundering (AML) laws and sanctions, leading to a $4.3 billion settlement. Yi He's response was twofold: first, to overhaul internal compliance practices, and second, to reposition Binance as a regulatory partner rather than an adversary.

By 2025, Binance had increased its compliance spending by over 30% year-on-year, with a team of 1,300 professionals-22% of its global workforce-dedicated to compliance. The exchange also banned over 600 accounts for trading bot misuse and launched a community incentive program to report suspicious activities as one analyst noted, "Binance is no longer just a crypto exchange; it's a compliance-first platform competing with traditional financial institutions."

Geographically, Yi He has leveraged Dubai as a regulatory sandbox. The UAE's crypto-friendly policies and Binance's $2 billion investment from state-backed MGX-a stake in stablecoins-have positioned the exchange to dominate the Middle East and Europe. This strategy mirrors the U.S. approach of localized compliance, where Binance adapts to regional rules while maintaining global operations.

Infrastructure Investments: Building the Web3 Foundation

While regulatory compliance is a defensive move, Yi He's offensive strategy lies in infrastructure. Binance Labs, under her leadership, has invested $7.5 billion in over 250 projects, with a focus on layer 1 networks, developer tooling, and security protocols. These investments are not speculative-they are foundational. For example, Binance Labs' backing of Initia, a layer 1 network designed to simplify rollups, addresses scalability issues that have long hindered mass adoption.

Yi He's vision extends beyond blockchain. She has championed Binance Square (formerly Binance Feed), a social platform connecting creators and projects with users in the Web3 economy. This move reflects her understanding of crypto's next phase: infrastructure that bridges decentralized finance (DeFi) with user-friendly applications. By 2025, Binance Square had become a hub for community-driven innovation, further solidifying Binance's role as an ecosystem builder.

Ecosystem-Driven Value Creation: The Binance Model

Binance's ecosystem strategy is a masterclass in network effects. Yi He has prioritized three pillars: compliance, community, and accessibility. The first two are self-explanatory; the third-making crypto accessible to retail users-has been a key differentiator. Binance's user base now spans 180 countries, with Yi He emphasizing localized marketing and customer service. This focus on retail has been critical in markets like Southeast Asia and Africa, where crypto adoption is driven by everyday users rather than institutional investors.

The results speak for themselves. Despite the 2023-2024 bear market, Binance's stablecoin supply grew by 35% since early 2025, a testament to its role in cross-border payments and DeFi. Yi He's belief that stablecoins will bridge crypto and traditional finance is gaining traction, with central banks and corporations increasingly adopting blockchain-based solutions.

Why This Matters for Investors

For investors, Binance's post-2023 trajectory under Yi He offers a compelling case for strategic investment in crypto infrastructure. Unlike speculative bets on tokens or NFTs, Binance's approach is rooted in long-term value creation through:
1. Regulatory alignment: Compliance is no longer a cost-it's a moat.
2. Infrastructure innovation: Projects like Initia and Binance Square address real-world scalability and adoption challenges.
3. Ecosystem dominance: Binance's user base and venture portfolio create a flywheel effect, where growth in one area fuels the next.

Critics may argue that Binance's past legal issues could resurface, but Yi He's leadership has mitigated this risk. The exchange's 2025 compliance framework is among the most robust in the industry, and its Dubai hub provides a buffer against U.S. regulatory overreach. For investors with a multi-year horizon, this resilience is invaluable.

Conclusion

Yi He's leadership has transformed Binance from a regulatory pariah into a crypto infrastructure powerhouse. By prioritizing compliance, infrastructure, and ecosystem growth, she has positioned the exchange to thrive in a maturing market. For investors, the lesson is clear: the future of crypto belongs to platforms that build resilient, user-centric ecosystems-and Binance, under Yi He, is leading the charge.