Binance Singapore is attempting to secure investment and protection from government funds at a valuation of $200 billion, according to sources. Colin Wu, a Chinese journalist, was the first to report the story on Twitter.
Exclusive: Multiple sources told that Binance is considering obtaining investment and protection from government funds at a valuation of $200 billion. Singapore is one of the most likely options. pic.twitter.com/y0ghk1vlYd— Wu Blockchain (@WuBlockchain) August 23, 2021
Binance’s AUM was compared to Coinbase’s profit in the first quarter in a Twitter thread. Coinbase, on the other hand, made $800 million in the first quarter, and its current market capitalization is only $54.2 billion. Binance, on the other hand, has a 4x profit margin and a market cap of $200 billion.
Binance is working hard to gain regulatory approval.
This could be viewed as Binance’s attempt to obtain regulatory approval in time for the upcoming government funding round. On August 23rd, the exchange announced the appointment of Richard Teng, the former Director of Corporate Finance at the Monetary Authority of Singapore (MAS) for 13 years, as CEO of Binance Singapore. This allegedly highlights Binance’s possible pursuit of a sovereign fund to assist the exchange with previous regulatory issues.
Binance does not accept funds from outside sources.
Binance Singapore’s rejection of Sequoia Capital’s investment was also mentioned by Wu blockchain. Binance CEO CZ confirmed that the exchange is pursuing collaboration with venture capitalists with ties to regulators, rather than simply accumulating external funds. Binance has made this decision in order to advance its goal of gaining regulatory clout in the face of a global regulatory crackdown.
In addition, the exchange recently saw a sovereign fund investment in Singapore, bolstering the allegations of government funding.
“Binance Singapore has received funding from Vertex Ventures, a subsidiary of Singapore’s sovereign wealth fund Temasek. Now seems like a good time to invest in Binance Global. Wu Blockchain tweeted, “The premise is that the government is willing to take risks.”
KYC (Know Your Customer) verification on Binance
Following a severe global crackdown, Binance has taken a series of regulatory measures. The exchange’s most recent update mandated KYC verifications in order to provide a safer platform for its users. Binance has taken regulators’ warnings seriously and made KYC verification a requirement for all new and existing Binance users. To set up and activate their accounts, new users will need to complete KYC authentication. Existing users will be restricted to “Withdraw Only” status if they are unable to complete the KYC process.