Binance’s Investment Arm Separates from Cryptocurrency the Exchange
In a recent development reported by Bloomberg, Binance Labs, the investment division of the renowned cryptocurrency exchange Binance, has undergone a significant transformation.
Operating independently from its parent company, Binance, Binance Labs has severed many of its previous ties with the exchange. This separation comes amidst growing regulatory scrutiny and ongoing legal challenges, including a lawsuit with the U.S. Securities and Exchange Commission (SEC). The restructuring of Binance Labs follows the departure of Changpeng “CZ” Zhao as CEO of Binance last year, marking a notable shift in leadership under the current CEO, Richard Teng.
Under the new operational terms, Binance Labs now functions as a distinct entity, no longer directly involved in the operations of the broader Binance Group, including its cryptocurrency exchange activities. While retaining the right to use Binance’s trademark, Binance Labs maintains no formal affiliations beyond this license agreement.
A spokesperson for Binance Labs confirmed that the division has taken steps to establish its autonomy, including implementing separate contractual agreements and operational systems for its employees. This restructuring aligns with a similar move made by Binance in support of the Binance-backed blockchain BNB Chain.
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Alex, an Investment Director at Binance Labs, emphasized the division’s ongoing commitment to identifying and investing in promising projects, a mission that has remained consistent since its establishment in 2018.
Despite these internal changes, the legal battle between Binance entities and the SEC continues, with the SEC actively pursuing legal avenues to strengthen its case. However, recent orders from Judge Amy Berman Jackson suggest a cautious approach from the court regarding additional legal materials submitted for consideration.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
