Following a series of regulatory disputes over the past few months, Binance wants to silence its authority by launching a $ 1 billion growth fund to support the adoption of its Binance Smart Chain.
The funds will be used to build multi-chain and cross-chain infrastructures to integrate other blockchains with Binance Smart Chain.
The words of the investment director
In a statement, Binance Smart Chain Accelerator Fund Investment Director Gwendolyn Regina said:
"With the $ 1 billion initiative, our focus will be expanded to building cross-chain and multi-chain infrastructures integrated with different types of blockchains."
About 50% of the funds will reportedly be used for blockchain services, including other niche areas such as virtual reality and gaming in the cryptocurrency world.
Approximately $ 300 million will be allocated to a construction program, while $ 100 million will be used for talent development and cash incentives.
When it comes to liquidity incentives, the funds will be used to provide bonuses to crypto platforms.
Binance and regulators around the world
The last few months have been pretty tough for Binance as it has rubbed most of the regulators around the world the wrong way and they rushed on it.
One of the biggest questions about Binance is the lack of a physical headquarters. Last month, CEO Changpeng Zhao noted that the headquarters were a necessity for the exchange. Zhao said,
"We realized that we need a centralized entity to work well with regulators."
The exchange also faced lawsuits from regulators in several countries including the UK, Italy, the Cayman Islands, Malaysia, the Netherlands, Singapore, Japan, and South Africa.
In Singapore, Italy and the Cayman Islands, regulators have said that the exchange is not allowed to do business in the countries. Singapore, however, recently confirmed that the license application for the exchange was pending, although the Monetary Authority of Singapore put Binance on an investor advisory list last month.
The UK, the Netherlands and Japan have issued a consumer warning against Binance. The UK, however, doubled down and instead claimed that Binance Markets Limited, which is a UK Binance entity, could not be regulated as it did not provide background information to the regulator.
The Malaysia Securities Commission has taken executive action against Binance on suspicion of operating in the country without authorization.
Meanwhile, its native token is available to be bought, sold and traded on trusted platforms such as Bitcoin Revolution which allows even small investors to trade cryptocurrencies without any knowledge.