Institutional investment surges 40%, crypto market enters new phase
At the 2024 TOKEN2049 Conference in Singapore, Binance CEO Richard Teng revealed Binance’s latest developments in the global market and shared the development trends of the cryptocurrency market. He said that 2024 is a landmark year for the crypto market, with institutional and corporate investors showing a significant increase in interest in crypto assets.
Deng Weizheng pointed out that Binance’s institutional and corporate investors have grown by 40% this year, showing that institutional funds are entering the crypto market in a big way. Institutional investors are paying more attention to crypto assets with the launch of Bitcoin and Ethereum spot ETFs. Although the current proportion of institutional investment is still in its infancy, Deng Weizheng believes that as more investment institutions complete due diligence on crypto assets, future growth will be even more rapid.
He further emphasized that the entry of institutional investment into the crypto market is one of the important drivers of Bitcoin prices reaching a new all-time high of $73,000 in 2024.
After the approval of the Bitcoin ETF, a large amount of new money poured into the market, contributing to this price surge. This shows that institutional investors will play an increasingly important role in the future of the crypto market.
Source: TOKEN2049 Binance CEO Deng Weizheng participated in the TOKEN2049 speech
Global compliance challenges and what’s next for Binance
Despite the growing interest from institutional investors, Deng Weizheng pointed out that many traditional financial institutions are still waiting for more regulatory clarity, which is one of the reasons why they have been slow to invest in the encryption market on a large scale. Deng Weizheng believes that global regulatory consistency will provide greater confidence to institutional investors, thereby increasing market liquidity.
As the world's largest cryptocurrency exchange, Binance faces different regulatory requirements from various countries.
Deng Weizheng said: "Countries have very different definitions and rules for cryptocurrencies. For example, Singapore, the country where this event was held, regards cryptocurrencies as digital tokens, but in other countries, some are defined as virtual assets, or Private property. This diverse regulatory environment requires exchanges to continuously adjust their operating strategies to ensure compliance with different regional compliance requirements.”
Deng Weizheng emphasized that Binance attaches great importance to compliance investment. In 2023, Binance will spend up to $213 million on compliance, and this number is expected to rise further in 2024. Binance has now expanded the size of its internal compliance team and invested significant resources in strengthening compliance work. From this point, we can see Binance’s determination to promote legal and compliance business on a global scale.
Binance Global Expanded Functions and Future Development Outlook
Binance currently has more than 225 million users worldwide and continues to expand its functionality to more countries and regions. Recently, Binance successfully obtained regulatory approval in Indonesia and India, two countries with huge market potential.
Deng Weizheng pointed out: "Cryptocurrency has the potential to fill the financial gap in areas where financial services are relatively underdeveloped, and can provide year-round financial services to groups who cannot use the traditional banking system."
In addition, Binance is also actively protecting user assets. Binance became the first exchange to launch the User Fund Insurance Fund (SAFU) and helped users recover potential losses through anti-fraud mechanisms. Deng Weizheng said that Binance will continue to work on improving security and transparency to ensure the safety of user funds.
Regarding the future development direction, Deng Weizheng expressed optimism. He believes that as the United States and other countries approve Bitcoin ETFs, the participation of institutional investors will further promote market growth. He also mentioned that the combination of blockchain technology and artificial intelligence will become the next important development direction of the encryption industry.
Source: Photographed by "Crypto City" Deng Weizheng believes that the combination of blockchain technology and artificial intelligence will become the next important development direction of the encryption industry
