The crypto industry remains an uncertain playing field in many countries due to a lack of regulatory guidelines. Despite that, Bloomberg analysis noted in a recent report that Binance, the largest crypto exchange by volume, managed an estimated but debatable figure of $20 billion in revenue last year.
With that, CEO Changpeng Zhao became one of the richest people in the crypto business with over $96 billion in wealth on the Bloomberg Billionaires Index.
VCs turning to crypto
Having said that, CZ recently commented that “traditional and crypto-focused VC firms are investing heavily” in the space. As per CoinShares’ Digital Asset Fund Flows Annual Summary, investment into digital assets saw inflows totaling US$9.3 billion last year, a significant 36% year-on-year increase. However, this YoY surge was much higher from 2019 to 2020. However, the report said that it “represents a maturing industry, with total assets under management (AuM) ending the year at US$62.5bn.”
With respect to the year ahead, funding will act as a backbone of crypto innovation, as per the Binance CEO. He wrote in an opinion piece for Forbes India,
“The funds have spurred innovation, especially for nascent projects that require financial backing. Many innovations will increase use cases and accessibility, facilitating crypto acceptance and adoption globally.”
With respect to India, the country is bracing for the Union Budget 2022-23. This is when the industry is expecting a clearer legal framework after the crypto bill was deferred from the Parliamentary session that concluded in December last year. CZ takes India to be a crucial market as he wrote,
“India stands to benefit as the crypto industry can provide funding opportunities for entrepreneurs, alternative income streams for individuals, and stronger support for Indian creators.”
Further adding that DeFi and GameFi are the ‘tip of the iceberg,’ with skyrocketing tech interest in the sector. Given India’s history of investment in the digital and technology space as a whole, CZ thinks that it “is poised to be a leader within blockchain and crypto.” Citing a recent report he commented,
“According to a Nasscom report, India’s crypto-tech market is expected to hit $241 million by 2030, potentially creating 877,000 jobs. The estimated money retail investors investing in crypto will be $15.6 billion by 2030, against $6.6 billion now.”
It is worth noting that a recent meeting of Bollywood actor Sanjay Dutt with the Binance CEO is also doing rounds on Twitter. This has left the Twitter community wondering if CZ has big plans in the Indian market, considering mainstream celebrities are making their NFT debut every other day.
It was a pleasure to catch up with you my brother @cz_binance . Hoping we meet again soon & continue having more such insightful conversations… pic.twitter.com/9aZwkHspmR
— Sanjay Dutt (@duttsanjay) January 8, 2022
Notably, India-based crypto exchange WazirX is actually owned by Binance. The same exchange was recently pulled up by the taxmen for possible tax evasion, and it reportedly paid 492 million rupees as tax and penalty.
