Following the $4.3 billion fine imposed on cryptocurrency exchange Binance by the US Department of Justice and the resignation of Binance CEO Changpeng Zhao, Coinbase CEO Brian Armstrong expressed his perspective on the issue.
Armstrong, who has led Coinbase since its founding in 2012, has always had a long-term vision for the company, according to his statement. Armstrong emphasized the importance of embracing compliance to ensure the longevity of the Company:
“We acquired licenses, hired compliance and legal teams, and made it clear that our brand is about trusting our customers and following the rules.”
Despite the challenges and costs involved in taking a concerted approach, Armstrong believes it is the right way to go:
“Taking a concerted approach is more difficult and expensive. You cannot launch every product that customers want, even though it is illegal. But this is the right approach because we believe in the rule of law.”
Recent news regarding Binance has reinforced Armstrong's belief in the importance of compliance. Armstrong sees this as an opportunity to turn a new page in the industry:
“We now have the opportunity to open a new page for this sector. “We have suffered a lot when operating in the US due to a lack of regulatory clarity, and I hope today's news serves as a catalyst to finally achieve this.”
Armstrong also expressed hope that Americans will not have to resort to offshore and unregulated exchanges to benefit from this technology. He believes the industry should be built in America, in accordance with US law:
“We will stay here in the United States because we believe in economic freedom and that the U.S. democratic system will eventually achieve that right.”
Coinbase CEO ended his message by saying “we are just getting started.”
*This is not investment advice.