Amidst Regulatory Controversy Binance Launches $1 Billion Crypto Fund

Decrypt | Scott Chipolina | Oct 12, 2021

Crypto exchange Binance has launched a $1 billion growth fund to spur on the adoption of blockchain technology, as well as to support the Binance Smart Chain blockchain itself.

“With the $1 billion initiative, our focus will be widened to building cross-chain and multi-chain infrastructures integrated with different types of blockchains”

Gwendolyn Regina, investment director of the Binance Smart Chain Accelerator Fund reportedly said in a statement.

Approximately half of the funds will go to blockchain services, as well as other, more niche areas of the crypto world such as gaming and virtual reality.

See:  Binance: The low-down on the drama-ridden crypto exchange

In addition, about $300 million will reportedly go to a builder program, and another $100 million will go to talent development and liquidity incentives. Liquidity incentives in this context suggest the fund will provide additional bonuses to crypto platforms. Increased yields for a limited time on decentralized finance (DeFi) platforms has been one example of this.

News of the fund comes amid a long and drawn-out period of regulatory controversy for Binance.

It’s been a difficult few months for Binance, as the exchange has raised the ire of financial services regulators around the world.

Regulators in the UK, Italy, Malaysia, the Cayman Islands, Singapore, Holland, South Africa, and Japan have all addressed the exchange’s apparent regulatory shortcomings.

In Holland and Japan, the Dutch Central Bank and the Financial Services Agency issued consumer warnings about Binance. In Italy and the Cayman Islands, regulators said Binance is not licensed to do business in their respective countries.

Read:  Binance Under the Microscope: Former FBI Agent Discusses Possible Investigation of World’s Largest Crypto Exchange

“We have come to realize that we need a centralized entity to work well with regulators,” Zhao said last month.

The Malaysia Securities Commission went as far as to take enforcement action against Binance for allegedly operating illegally in the country.

Singapore—where CZ lives—said Binance is not currently licensed, but recently told Decrypt an application was ongoing. Last month, the Monetary Authority of Singapore placed Binance on an Investor Alert List.

Continue to the full article –> here

The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada’s Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Source: https://ncfacanada.org/amidst-regulatory-controversy-binance-launches-1-billion-crypto-fund/