TLDR:
- Binance spun off its venture capital arm, Binance Labs, earlier this year under new CEO Richard Teng.
- Teng’s background in regulatory compliance signals a shift towards greater regulatory compliance at Binance.
Cryptocurrency exchange Binance made headlines when it spun off its venture capital arm, Binance Labs, earlier this year. The move was initiated by the new CEO, Richard Teng, who took over from Changpeng “CZ” Zhao in November. Teng’s appointment was seen as a step towards greater regulatory compliance at Binance, given his previous experience working for the Financial Services Regulatory Authority at Abu Dhabi Global Market and the Monetary Authority of Singapore.
Despite the spinoff, Binance Labs still has a strong portfolio, with a valuation of $10 billion and around 250 companies under its wing. Notable investments include Ethereum sidechain Polygon and sports-focused blockchain provider Chiliz. Research by CoinGecko revealed that Binance Labs had made 177 investments as of September 2023, ranking among the most active in the industry. However, Coinbase Ventures emerged as the most active crypto venture capital company with 372 investments during the same period.
While Binance Labs’ spinoff was reported earlier by Bloomberg, neither the venture capital arm nor Binance responded to requests for further comment. The move reflects a larger trend towards regulatory scrutiny and compliance within the cryptocurrency industry, as companies navigate evolving legal landscapes and international regulations.
