It’s Time to ‘Turn the Page’ After Binance Settlement

As developments continue over Binance’s $4.3 billion settlement with the US regulators, Coinbase CEO Brian Armstrong said that the crypto industry can finally close the chapter on the range of scandals and problems linked to Binance.

“The enforcement action against Binance, that’s allowing us to kind of turn the page on that and hopefully close that chapter of history,” Armstrong said in an interview with CNBC’s Joumanna Bercetche.

Brian Armstrong Praises Smaller Crypto Firms

In a recent statement, Brian Armstrong highlighted the pivotal role regulatory clarity plays in attracting substantial investment, particularly from institutional entities. Armstrong acknowledged the significant contributions of numerous crypto companies in shaping the global crypto economy and transforming the financial system.

Despite their valuable efforts, he noted that many of these entities still operate as small startups. The call for regulatory clarity reflects a broader industry sentiment, with the belief that clear regulations will not only foster growth for existing crypto enterprises but also encourage greater investment participation, particularly from institutional players.

Binance witnessed massive outflows after the settlement announcement by the US court. This led to investors flocking to Coinbase in big numbers.

Addressing concerns about the reputation of cryptocurrencies, Brian Armstrong, CEO of Coinbase, challenged the prevailing notion that crypto is predominantly associated with nefarious activities like fraud, money laundering, and terrorist financing.

He emphasized that, based on their observations, illicit activities within the crypto space amount to less than 1%. In comparison, Armstrong noted that the percentage of illicit uses with traditional cash often exceeds this figure. His remarks counter the narrative that has deterred some financial institutions from engaging with cryptocurrencies due to compliance apprehensions.

Acknowledging instances of misconduct within the crypto industry, Brian Armstrong pointed out that there have been “bad actors.” He specifically referenced the case of Binance, the collapse of the FTX crypto exchange, and the legal troubles faced by its founder, Sam Bankman-Fried, convicted on charges of fraud.

Coinbase Making A Move in the U.K

Brian Armstrong is present in the U.K. for the Global Investment Summit, an event aimed at encouraging foreign investment in the country. Notably, Coinbase is the sole crypto company to receive an invitation to the summit, a move Armstrong views as an endorsement for the company, though not necessarily for the broader crypto industry.

Expressing his admiration for U.K. Prime Minister Rishi Sunak’s approach to digital currencies, Armstrong mentioned that Coinbase is increasing its investments in the U.K. as a response to Sunak’s leadership.

In the U.K., there is an ongoing effort to regulate digital assets, including cryptocurrencies and stablecoins. Meanwhile, Coinbase is currently entangled in a legal dispute with the U.S. Securities and Exchange Commission, facing allegations of violating securities laws with its platform.

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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