© Reuters
Following the significant fine imposed on Binance by the Department of Justice and the resignation of its CEO, Changpeng Zhao, Brian Armstrong of Coinbase (NASDAQ:) highlighted the importance of compliance and economic freedom as a fundamental principles of his business. Since its founding in 2012, Coinbase has always strived to comply with regulations by obtaining necessary licenses and building a strong legal team.
Mr. Armstrong believes that it is essential to act within the law, even if it means slowing down product development. He sees the recent turmoil as an opportunity to encourage clear regulations in the United States, to reduce reliance on unregulated international platforms. His commitment to complying with US regulations is unwavering, and he places his trust in the democratic process to maintain economic freedom within the cryptocurrency industry.
Mr Armstrong yesterday backed his company’s regulatory compliance after rival Binance admitted criminal liability. Highlighting his goal of making Coinbase a generational entity and emphasizing trust in their brand, Armstrong detailed their efforts to obtain the necessary licenses and establish a solid legal framework, accepting slower progress as a trade-off for the adherence to the law.
Just yesterday, the Department of Justice announced that Binance had admitted guilt to violations of the Bank Secrecy Act and operating without a money transmission license. Mr Armstrong has criticized ambiguous US regulations which he says are pushing investors towards unregulated offshore exchanges, but he hopes Binance’s situation will lead to more definitive guidelines.
Mr. Armstrong pointed to the SEC’s objections to the Celsius restructuring case as an example of unclear regulation contributing to the majority of cryptocurrency transactions being off-shored. Although now being sued by the SEC for alleged securities law violations, Coinbase is not facing any charges related to money transmission or secrecy violations. banking (Bank Secrecy Act).
Recent events have highlighted the contrasting approaches of major players in the crypto space towards regulation and compliance. Armstrong’s remarks over the past two days reflect a strategic stance that prioritizes long-term stability and legitimacy over rapid expansion, signaling Coinbase’s dedication to aligning with regulatory frameworks Americans.
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