Quick answer
Binance launched in 2017, became the world's largest crypto exchange, and in November 2023 pleaded guilty in the US and agreed to pay about USD 4.3 billion. Its founder Changpeng Zhao served four months in prison and was pardoned in October 2025. Kenya now regulates crypto platforms under the VASP Act, 2025 and the VASP Regulations, 2026, and the CMA warns that crypto investments are high risk.
Updated 18 October 2026
Binance is the crypto exchange most Kenyans have heard of, but its history is more dramatic than its app suggests. The seven facts below come from US court and Department of Justice (DOJ) records, Reuters, and Kenyan regulators. This article is information, not investment advice, and contains no affiliate links.
1. Binance Only Launched in 2017
US court documents describe Binance as launching in 2017. It grew so quickly that the DOJ calls Binance.com “the world’s largest cryptocurrency exchange”. Much of that growth, the DOJ says, came from customers in the United States.
2. It Pleaded Guilty in One of the Largest Corporate Penalties in US History
On 21 November 2023, Binance Holdings pleaded guilty to US charges of breaking anti-money laundering rules, operating an unlicensed money transmitting business, and violating sanctions. It agreed to forfeit USD 2.51 billion and pay a criminal fine of USD 1.81 billion, a total of USD 4,316,126,163, about KSh 557 billion at an exchange rate of KSh 129 to the dollar. It also agreed to a three-year independent compliance monitor.
3. For Years, You Could Trade With Just an Email Address
According to the DOJ, Binance let users open accounts and trade without giving any identifying information beyond an email address. It only began requiring know-your-customer (KYC) details from all users in August 2021, and let users without KYC keep trading until May 2022. The DOJ also said Binance never filed a suspicious activity report with US authorities.
4. Its Founder Went to Prison, Then Got a Pardon
Founder and CEO Changpeng Zhao, known as CZ, a Canadian national, pleaded guilty to failing to maintain an effective anti-money laundering programme and resigned as CEO. In April 2024, a federal judge in Seattle sentenced him to four months in prison, Reuters reported, far less than the three years prosecutors had asked for. On 21 October 2025, US President Donald Trump granted Zhao a full pardon, according to the DOJ pardon record.
5. “Better to Ask for Forgiveness Than Permission”
Court documents quote Zhao telling employees it was “better to ask for forgiveness than permission”. The DOJ said he prioritised growth over compliance with US law, and that between January 2018 and May 2022 Binance caused more than USD 898 million in trades between US users and users in Iran.
6. It Launched a Separate US Exchange
In 2019 Binance announced it would block US customers and launched a separate exchange, Binance.US. The DOJ says Binance still took steps to keep valuable US “VIP” customers on the main platform, including helping them register offshore accounts.
7. Kenya Now Has a Law That Covers Exchanges Like Binance
Kenya’s Virtual Asset Service Providers (VASP) Act, 2025 was gazetted on 21 October 2025 and took effect on 4 November 2025. It makes the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA) responsible for licensing and supervising crypto service providers. When it took effect, CBK and CMA said they had not licensed any VASP to operate in or from Kenya, and that licensing would start once regulations were issued. The VASP Regulations, 2026 were published in July 2026. Under them, the CMA licenses exchanges and related investment activities, while CBK covers activities such as stablecoin issuance and crypto-to-shilling conversion.
We could not confirm that Binance holds a Kenyan VASP licence. Check the CMA and CBK websites for their official lists of licensed providers before using any platform.
CMA Risk Caution
Crypto assets are high-risk and volatile. You can lose all the money you put in. In its cautionary statement on initial coin offerings, the CMA warned that unregulated crypto offerings carry:
- a higher risk of fraud, because most operate only online and may not be regulated;
- cross-border risk, because recovering money from an operator outside Kenya can be extremely difficult;
- information gaps, because many retail investors cannot fully understand the risks and costs; and
- liquidity risk, with opaque, volatile prices and the chance that you cannot sell when you want to.
The CMA urges the public to be cautious with any crypto offering that lacks regulatory approval. Never share your account login or one-time codes, and be wary of anyone promising guaranteed crypto returns. Our report on the CMA’s probe into a crypto investment scheme shows how these schemes can go wrong, and our guide on checking if a broker is CMA licensed walks through the register. If you want regulated, lower-risk places for savings, compare money market funds in Kenya.
Frequently asked questions
Who founded Binance?
Changpeng Zhao, a Canadian national, who resigned as CEO in November 2023 after pleading guilty in the US.
How much did Binance pay in its US case?
A total financial penalty of USD 4,316,126,163, made up of a USD 2.51 billion forfeiture and a USD 1.81 billion fine.
Is Binance licensed in Kenya?
We could not confirm a Kenyan licence. Kenya’s VASP regulations took effect in 2026, so check CMA and CBK for their lists of licensed providers.
Is crypto legal in Kenya?
Kenya regulates crypto service providers under the VASP Act, 2025. The CMA warns that unregulated crypto investments are speculative and risky.
Did CZ go to prison?
Yes. He was sentenced to four months in April 2024 and was pardoned in October 2025.
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