Cryptocurrency exchange Binance has announced a $1 billion accelerator fund to expand the capabilities of Binance's smart chain ecosystem and accelerate mass adoption in the financial technology sector.
Cryptocurrency exchange Binance has announced a $1 billion accelerator fund to expand the capabilities of Binance's smart chain ecosystem and accelerate mass adoption in the financial technology sector. The stock exchange presented eight-figure funds in a multi-stage development model in four specific areas: Talent Development, Liquidity Stimulus Program, Builder Program and Investment and Incubation Program. The announcement indicated that they would allocate $100 million, $100 million, $300 million, and $500 million, respectively, to each segment. The pot's biggest donor, investment and incubation program, will focus on building multiple chains in the emerging technology field. This includes various metaversions, games, virtual reality, and artificial intelligence.
Binance Maverick founder Changpeng Zhao – also known as CZ on Twitter – shared a simple but effective take on the news:
Billions of reasons to rely on #BSC https://t.co/DHeUktfj84
- CZ Binance (@cz_binance) October 12, 2021
In its statement, the platform outlines high expectations for improved interoperability between traditional infrastructure and Web 3.0: "Working with industry-leading organizations, mutual funds will focus on blockchain scaling technologies for real-world use cases, bridging the gap between crypto blockchains and today's technical and financial sectors." Binance Smart Chain was launched as a major rollout plan in September 2020 to encourage the development of decentralized applications or dApps compatible with the Ethereum blockchain via the Ethereum virtual machine.
Since its inception, the platform has grown to more than 1 million daily active users on more than 900 dApps. One of the most well-known decentralized exchanges, or DEXs, built on BSC is PancakeSwap, which according to Defistation currently has a total of 9.8 billion TVL. Amid the growth of hacking and malicious breakthroughs in decentralized finance or in the DeFi space, Binance Smart Chain has partnered with blockchain protection company ImmuneFi to offer bug rewards and other incentives to reward ethical hackers and whitehat developers.
Under pressure from regulatory authorities from around the world, major exchange Binance wants to set up its headquarters in Ireland. So far, it has operated worldwide for years under what CEO Changpeng Zhao calls a "decentralized" structure. On Wednesday, a report from Irish media firm Independent found that as of September 27, Binance had set up three subsidiaries in the country - Binance (APAC) Holdings, Binance (Services) Holdings and Binance Technologies - with Zhao nominated as director for each.
In an interview with Reuters on Thursday, Zhao said Binance is currently "in the process of building many factories in different parts of the world." When asked if Ireland was part of Binance's plans for an official headquarters, he said, "Yes, it is." "Historically, we claim we have no facilities," Zhao said, adding. “When we started, we wanted to adopt the principles of decentralization, no headquarters, worldwide, without borders. It is now very clear that in order to manage a centralized exchange, you need a centralized legal entity structure behind it. " Binance's move to strengthen its compliance comes as regulators around the world are taking action to limit the services provided by exchanges or to warn their citizens against trading on unlicensed platforms.
Binance's corporate structure has long been unclear, with Reuters reporting that its parent company is registered in the Cayman Islands. Founded in China in July 2017, Binance quickly played into regulatory arbitrage worldwide after the Chinese government cracked down on domestic cryptocurrencies that same year. Binance quickly moved its headquarters to Tokyo before expanding to Hong Kong and Taiwan. Binance had stated its intention to start operations in Malta in March 2018, with then-Prime Minister of Malta Joseph Muscat personally welcoming the company on social media. Binance registered its subsidiaries for European charities and services in the island nation.
Even though the Malta Financial Services Authority (MFSA) announced in July 2018 that it was still working on a regulatory framework for licensing crypto companies, the exchange appears to be very comfortable with local administration. Zhao makes frequent appearances with government officials, and former Maltese President Marie-Louise Coleiro Preka has been appointed senior advisor to Binance Charity and the Binance-backed Blockchain Charitable Foundation. In February 2020, the MFSA stated that local reports claiming Binance for the Malta Stock Exchange were false, claiming that “Binance is not authorized by the MFSA to operate in the cryptocurrency space and is therefore not a regulation that the MFSA should oversee. ” While the report seems to have attracted a lot of media and the crypto community in an unexpected way, Zhao took to Twitter and said that “nothing has changed in Malta for Binance or any other crypto exchange. Malta hasn't licensed anyone yet. " In July this year, the MFSA issued a new warning, stressing that Binance was not approved to operate in Malta.