As an ardent investor in the crypto realm, Binance Labs, the venture capital subsidiary of leading cryptocurrency exchange Binance, continues to show quite some defiance. All this despite its parent company Binance battling potential fraud allegations and regulatory headwinds.
Just last week, Binance Labs shelled out substantial investment into four distinguished cryptotech companies via the Most Valuable Builder (MVB) incubator program. The recipient startups, blockchain scaling company AltLayer, decentralized exchange KiloEx, DeFi lending platform Kinza, and Web3 gaming brand Sleepless AI, have not disclosed the total amount raised. However, factoring in the numerous fundraises last week, along with the milky transparency of the sector, an accurate estimate of the overall tally remains elusive.
This recent investment splurge comes hot on the heels of increasing scrutiny from national and niche regulators targeted at its parent organization Binance. The heightened attention finds roots in charges leveled by diverse law enforcement agencies in the U.S. and in overseas territories. Three months ago, the U.S. SEC launched a suit against Binance, accusing its CEOs of “blatant disregard of federal securities laws”. 13 charges were pushed against the company, including operating an unregistered exchange and non-compliance with the broker registration mandate.
French authorities also conducted an inspection at Binance‘s France offices last month. The probe was related to allegations of illegal provision of digital-asset services and enhanced money laundering. A further setback was a directive from Nigeria’s SEC, which ordered the raw halt of Binance‘s operations within its territorial jurisdiction.
In the grand scheme,
In light of all this, the burning question remains: In a world where regulatory compliance is the law, and the sword of Damocles dangles over Binance, how does the company reconcile its conundrum of continued betting through its VC arm on the one hand, and heightened compliance on the other?
Source: Cryptonews
