Technology
Monday, November 27th, 2023 3:07 pm EDT
Key Points
- Binance Settlement Marks Turning Point: Coinbase CEO Brian Armstrong asserts that the recent historic settlement against Binance by the U.S. Department of Justice signals a turning point for the cryptocurrency industry, allowing it to move past a series of scandals and problems. Armstrong expresses optimism that this enforcement action against Binance will help close a chapter in the industry’s history.
- Regulatory Clarity and Increased Investment: Armstrong emphasizes the importance of regulatory clarity in the crypto industry, stating that it will attract more investment, particularly from institutions. He believes that despite many crypto companies being small startups, they are contributing to building the global crypto economy. The $4 billion settlement against Binance is highlighted as a significant development following accusations of violating the U.S. Bank Secrecy Act and breaching sanctions on Iran.
- Crypto’s Legitimacy and Global Investment Summit: Armstrong challenges the notion that cryptocurrencies are mainly used for nefarious purposes, arguing that illicit activity in the crypto space is less than 1%, contrasting it with the often higher illicit uses of cash. Coinbase’s CEO attends the Global Investment Summit in the U.K., where Coinbase was the only crypto company invited. Armstrong sees this as an endorsement for Coinbase, expressing admiration for U.K. Prime Minister Rishi Sunak’s leadership in digital currencies. He notes Coinbase’s increased investment in the U.K. and dispels the idea that the SEC’s legal actions have forced the company to move offshore, asserting active investment in its home market.
Coinbase CEO Brian Armstrong believes that the recent historic settlement against Binance by the U.S. Department of Justice marks a turning point for the cryptocurrency industry, allowing it to move past a series of scandals and problems. In an interview with CNBC, Armstrong expressed the hope that the enforcement action against Binance would help close a chapter in the industry’s history. He acknowledged the presence of small startups working to build the crypto economy globally and emphasized that regulatory clarity would encourage more investment, especially from institutions.
Binance, a major player in the crypto space, was hit with a $4 billion settlement by the U.S. Department of Justice last week. The settlement led to the resignation of Binance’s founder and CEO, Changpeng Zhao, who pleaded guilty to charges of money laundering violations. The U.S. government accused Binance of violating the U.S. Bank Secrecy Act and breaching sanctions on Iran.
Armstrong pushed back against the common narrative that cryptocurrencies are primarily used for illicit purposes, such as fraud, money laundering, and terrorist financing. He highlighted that the percentage of illicit activity in the crypto space is less than 1%, contrasting it with the often higher illicit uses of cash. While acknowledging that there have been “bad actors,” including Binance and the collapse of crypto exchange FTX, Armstrong underscored the relatively small scale of illicit activities within the cryptocurrency ecosystem.
Currently in the U.K. for the Global Investment Summit, where Coinbase was the only crypto company invited, Armstrong sees the summit’s invitation as an endorsement for Coinbase, if not necessarily for the broader crypto industry. He expressed his admiration for U.K. Prime Minister Rishi Sunak’s leadership in the realm of digital currencies and revealed that Coinbase is increasing its investments in the U.K. The U.K. is actively working on regulating digital assets, including cryptocurrencies and stablecoins.
Addressing Coinbase’s ongoing legal battle with the U.S. Securities and Exchange Commission (SEC) over alleged securities law violations, Armstrong conveyed confidence in the company’s chances of prevailing in the lawsuit. He refuted claims that the SEC’s actions forced Coinbase to move offshore, emphasizing the company’s continued active investment in its home market.
For the full original article on CNBC, please click here: https://www.cnbc.com/2023/11/27/coinbase-ceo-crypto-industry-can-turn-page-after-binance-settlement.html
