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Binance has recorded a 40% increase in institutional and corporate investors joining the platform this year.?
This rise signals a growing interest from big players in the cryptocurrency market despite the challenges Binance has faced.
Institutional Interest in Cryptocurrency Increases
Binance CEO Richard Teng shared this information with CNBC at the Token2049 conference in Singapore on Wednesday. According to the company’s boss, institutional crypto investment is just the beginning.
He said that many institutions are still conducting due diligence, but the increase in investor participation reflects the warming attitude towards cryptocurrencies like Bitcoin. He noted that there was a 40% increase in onboarding in that aspect for the entire year alone.
Teng was formerly CEO of the Financial Services Regulatory Authority in Abu Dhabi Global Market and chief regulatory officer of the Singapore Exchange. He became Binance’s CEO in November 2023 and did not disclose specific firms involved but emphasized the growing interest.
This comes as more institutions recognize the potential of digital currencies and work with platforms like Binance, which has restructured its leadership to improve regulatory compliance after the $4.3 billion settlement with the US government.
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Binance’s shift from being founder-led to a board-governed company with seven directors is part of this adjustment. Teng explained that is the structure regulators are better used to, further hinting that these changes may ease regulatory concerns and encourage more institutions to invest in crypto.
The Impact of Regulation
Teng also pointed to regulatory advancements as a catalyst for the increased participation of institutional investors.
In the U.S., the approval of Bitcoin exchange-traded funds (ETFs) in January and the approval given to trading similar funds for Ethereum in July have given institutions more certainty. Teng acknowledged that the regulatory understanding will give mainstream users assurance.
The entry of traditional Wall Street giants like BlackRock and Franklin Templeton into the crypto ETF space is also a testament to growing institutional confidence in digital currencies.
BlackRock’s CEO Larry Fink, once a Bitcoin skeptic, now refers to the cryptocurrency as digital gold, indicating the shift in perception.
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Moreover, Teng mentioned that the cryptocurrency market tends to warm up around 160 days after a significant technical event known as Bitcoin Halving.
The halving event often affects Bitcoin prices, and Teng suggested that institutions might be watching closely for potential price increases.
