Binance Reallocates its $1B Industry Recovery Fund

Binance’s CEO, Changpeng Zhao has stated that his firm will be converting the balance of its $1 billion industry recovery funds from BUSD to Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB).

Binance, the largest crypto exchange set up the industry recovery funds to assist strong crypto projects with liquidity following the collapse of the defunct FTX exchange. At the time, the firm planned to disburse the funds through its venture capital arm, Binance Labs.

Additionally, the firm clarified that participants can only access the funds in BUSD stablecoin. Interestingly, the initiative has already received over 150 applications from companies wishing to participate.

At the moment, Zhao has established that these funds would be exchanged for Binance Coin (BNB), Ethereum (ETH), and Bitcoin (BTC). Zhao ascribed this action to the current changes in stablecoins and banks made by US regulators.

Remarkably, the move does not come as a surprise given the recent attention BUSD has received from the US government. Meanwhile, the exchange has begun looking at new stablecoins for its platform in response to the recent regulatory crackdown by US regulatory agencies.

Binance Thrives Amid Challenges

In recent years, Binance has faced increased scrutiny from regulators around the world, as governments seek to better understand and regulate the cryptocurrency industry. In January, retail users of Binance were placed on a USD restriction, following Signature Bank’s announcement to stop accepting bank transfers of less than $100,000.

Despite these increased regulatory pressure and drawbacks, Binance has continued to operate and expand its offerings. Interestingly, the firm has expanded its territory by launching its prepaid crypto card services in Colombia.

Notably, Binance gained more dominance following the collapse of its rival exchange, FTX. The exchange was reported to have controlled up to 55% of the world’s crypto spot trading in January.

Following expansion, the company also announced its plans to increase the number of its employees this year. Zhao stated at a crypto conference that his firm plans to continue building until the bear market is over.