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Binance venture capital arm becomes independent entity

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Binance, the world’s largest cryptocurrency exchange, quietly detached its venture capital arm, Binance Labs, into an independent entity earlier this year.

This strategic organizational change marks one of the pivotal moves in the early tenure of CEO Richard Teng, who assumed leadership four months ago.

Binance Labs, now operating independently, has updated its website to clarify its separate status from the Binance Group. While still licensed to use the Binance trademark, the venture unit highlighted its autonomy and lack of involvement in the operations of the broader Binance cryptocurrency exchange.

According to reports, Binance Labs severed ties with the wider Binance Group earlier this year, with staff contracts now distinct from those of the exchange’s employees. Despite these structural changes, operational procedures are expected to remain largely unchanged.

The spinoff follows Binance’s agreement to pay over $4 billion in fines to U.S. agencies in November, resulting in co-founder Changpeng Zhao stepping down from his CEO position. However, CZ said he would continue to provide guidance as a shareholder and former chief executive within the bounds of the resolutions with U.S. agencies.

Richard Teng assumed the role of CEO, overseeing major changes like the spinoff of Binance Labs. Teng, previously overseeing Binance’s Global Head of Regional Markets, has set forth his goals, which include maintaining user confidence in the platform, collaborating with regulatory bodies to balance innovation with consumer protection, and driving the growth of web3 through partnerships.

Binance Labs, led by co-founder Yi He, has been a key player in the crypto investment space since 2018, having invested in over 200 projects. With assets exceeding $10 billion, the venture arm continues its investment activities, recently concluding its sixth incubation season and preparing for the launch of the seventh.

Despite challenges, Binance Labs remains active in the crypto investment landscape, backing projects like Babylon and Ethereum restaking protocols Renzo and Puffer Finance.

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