Binance reaches 250 million users and targets 1 billion by 2025

Binance, the world’s largest cryptocurrency exchange by trading volume, has reached a significant milestone, surpassing 250 million users. This achievement reinforces its dominant position in the global crypto market, with a 24-hour trading volume of approximately $17 billion. This places Binance far ahead of competitors like Bybit, which reports $5.3 billion, and Coinbase at $3.6 billion.

Despite its market leadership, Binance has faced numerous regulatory challenges in 2024. In the United States, the exchange has been under scrutiny by the Securities and Exchange Commission (SEC), which filed a lawsuit alleging securities violations. As a result, Binance’s U.S. affiliate, Binance.US, saw a dramatic 75% drop in revenue and was forced to lay off around two-thirds of its workforce, totaling over 200 employees. These difficulties highlight the pressure the company faced due to the regulatory environment.

Additionally, Binance’s co-founder, Changpeng Zhao (CZ), faced legal issues in 2024 related to money laundering charges in the U.S. He ultimately pled guilty and was sentenced to six months in prison. This legal setback was part of a broader series of regulatory challenges for the company, including accusations in Australia over insufficient consumer protections by the Australian Securities and Investments Commission (ASIC) and legal actions in Nigeria concerning unlawful operations.

In response to these regulatory pressures, Binance made significant changes to its leadership, appointing Richard Teng as its new CEO in 2024. This move signals Binance’s commitment to improving compliance and adapting its operations to navigate the increasingly complex regulatory landscape.

While Binance’s continued dominance in the cryptocurrency market is undeniable, decentralized exchanges (DEXs) like Uniswap and PancakeSwap are gaining traction as alternatives. DEXs offer privacy and decentralization, allowing users to trade directly via blockchain protocols. However, these platforms face challenges such as lower liquidity and user complexity, which can hinder mainstream adoption, especially among less experienced traders.

Binance’s impressive user base and trading volume underscore the ongoing reliance on centralized platforms for mainstream adoption of cryptocurrencies. Looking ahead, Binance is aiming to further expand its reach, with CEO Teng expressing the company’s long-term vision: “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.” The company’s ambitions include reaching 1 billion users by 2025, signaling its ongoing drive for growth despite the regulatory hurdles it faces.

As the cryptocurrency ecosystem evolves, the balance between centralized platforms like Binance and decentralized exchanges will play a crucial role in shaping the future of digital assets. For now, Binance remains at the forefront, pushing ahead with growth while navigating a complex regulatory environment.