Crypto Exchanges Have a Plan to Beat Binance: Play by the Rules

In the wild world of cryptocurrency exchanges, one strategy never seemed to pay off: embracing regulation.

Take Gemini, started by twins Cameron and Tyler Winklevoss. While it was plastering posters in New York subways a few years ago, declaring there was “Finally, a regulated place to buy, sell and store crypto,” an exchange called Binance—with no clear headquarters and a mysterious structure—quietly took the top spot among the world’s cryptocurrency exchanges.

Suddenly, touting adherence to the rulebook looks very smart. Although Binance Holdings Ltd. turns away American customers, it is now said to be facing probes from U.S. agencies. ...