Yes they need that in order for them to be available in many countries, I think Binance CEO came to our country last year have some talks but I don't know if what is the purpose for that, maybe for them to be legally available in here? because this country is not yet open to crypto and they treat it as a threat to our economy and the whole nation. That's good actually, if they want to reach for more people they need to get approval from the government as well.
If Binance would comply with all the requirements for countries' approval, more countries could experience the benefit of their cryptocurrency services. Recently, Binance has been facing issues in our country since they can't comply with the requirements being asked by our government but so far, we're still able to use Binance freely here.
We can't question why most traders prefer Binance because it's the most trusted exchange so far so people will always choose it not just because it's a top exchange but also to the good service that they provide.