Binance Singapore, according to reports, is aiming to gain investment and protection from government funds with a $200 billion valuation. Colin Wu, a Chinese journalist, broke the story first on Twitter.
The Twitter thread contrasted Binance’s AUM with Coinbase’s first-quarter profit. Coinbase, on the other hand, earned $800 million in Q1, and its current market capitalization is only $54.2 billion. In comparison to Binance, which has maintained a 4x profit margin with a market cap of $200 billion.
This might be interpreted as Binance attempting to obtain regulatory approval in time for the impending government investment round. On August 23, the exchange announced the appointment of Richard Teng as CEO, Binance Singapore. Teng formerly served as Director of Corporate Finance at the Monetary Authority of Singapore (MAS) for 13 years. This supposedly demonstrates Binance’s possible pursuit of a sovereign fund to assist the exchange with previous regulatory difficulties.
Binance declines to accept external funds
Additionally, Wu blockchain noted Binance Singapore’s rejection of Sequoia Capital’s investment. CZ, the CEO of Binance, said that the exchange is targeting collaboration with venture capital firms with regulatory ties, rather than simply external fund accumulation. Binance has made this choice in order to advance its goal of achieving regulatory superiority in the face of a global regulatory crackdown. Additionally, the market recently witnessed a sovereign fund investment in Singapore, bolstering the claims of government sponsorship.
Binance has taken a series of regulatory actions in response to a harsh global crackdown. The exchange’s most recent update mandated KYC verifications in order to provide a safer environment for its consumers. The exchange has taken authorities’ warnings seriously and has implemented mandatory KYC verification for all new and existing Binance users. To create and activate their accounts, new users will be needed to undergo KYC authentication. While existing customers will be restricted to a “Withdraw Only” status if they are unable to successfully complete the appropriate KYC process.
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