Crypto exchange Binance has launched a $1bn growth fund focused on introducing the company's proprietary blockchain technology.
Binance Smart Chain is an in-house built blockchain that the exchange hopes to see successfully take root with financial institutions around the world, giving it more clout in a world of finance that is increasingly reliant on blockchain technology for day-to-day operations.
Commenting on this move, Binance Smart Chain Accelerator Fund investment director Gwendolyn Regina said: “With the $1bn initiative, our focus will be widened to building cross-chain and multi-chain infrastructures integrated with different types of blockchains.”
The money will be allocated to different areas of the experience, with $300m immediately earmarked for the builder program and $100m going to the development of liquidity. Binance has announced this move amid increased scrutiny from regulations all over the world.
Numerous countries and financial watchdogs have put the company under close scrutiny, with the UK, Singapore, Japan, South Africa and others just a few of the jurisdictions that are now looking into how Binance operates and whether it meets local financial regulation.
The Malaysia Securities Commission has even announced enforcement action against Binance and argued that the company had been operating illegally in the country.
The Financial Conduct Authority (FCA) in the UK has also cautioned consumers to stop using Binance as it operates without the necessary regulatory checks. Later, the FCA took aim at the company's subsidiary in the UK and argued that it had failed to provide basic information.
Binance has criticized those claims arguing that it had been operating within the regulatory framework in each instance it was challenged. The present investment in its growth fund is a testimony to the company's determination to continue expanding.