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Crypto should “turn the page” after the Binance saga – Brian Armstrong

TL;DR

  • Amidst the enforcement action taken by the U.S. government against Binance, Coinbase CEO Brian Armstrong told CNBC’s Joumanna Bercetche that the crypto industry will “turn the page” in due time.
  • Binance experienced large withdrawals after the US court settlement. This attracted many investors to Coinbase.
  • Armstrong backs crypto adoption and expansion by “I think that regulatory clarity is going to help bring in more investment, especially from institutions.”

In light of ongoing developments surrounding Binance‘s $4.3 billion settlement with US regulators, Coinbase CEO Brian Armstrong asserts that the myriad controversies and issues associated with Binance can now be definitively resolved within the crypto industry.

The crypto sector can finally end an extensive string of problems and scandals following the historic settlement reached between Binance and the U.S. Department of Justice.

Crypto should move forward – But how

The settlement announcement by the US court prompted Binance to experience significant outflows. As a consequence, a significant influx of investors took to Coinbase.

Brian Armstrong recently stated that regulatory clarity is critical to attracting significant investment, particularly from institutional groups to the crypto industry. Armstrong recognized many crypto firms for their major contributions to developing the global digital asset industry and altering the financial system.

The enforcement action against Binance, that’s allowing us to kind of turn the page on that and hopefully close that chapter of history.

Brian Armstrong – In an interview with CNBC’s Joumanna Bercetche

Notwithstanding their noteworthy efforts, Brian Armstrong observed that a considerable number of these start-ups continue to function as nascent ventures. The demand for regulatory clarity is indicative of a more widespread sentiment within the industry, which is that well-defined regulations will not only promote the expansion of established crypto enterprises but also inspire increased investment, especially from institutional investors.

There are many crypto companies that are helping build the crypto economy and change our financial system globally. But many of them are still small startups […]I think that regulatory clarity is going to help bring in more investment, especially from institutions

Brian Armstrong

Coinbase’s CEO defends crypto

In response to concerns about crypto’s reputation, Brian Armstrong, CEO of Coinbase, refuted the widely held belief that the digital asset industry is primarily connected with illegal activities such as fraud, money laundering, and terrorism financing.

Based on their observations, he emphasized that criminal activity in the DeFi ecosystem area accounts for fewer than 1% of all transactions. In comparison, Armstrong highlighted that the percentage of illicit cash uses frequently exceeds this figure. His views contradict the narrative that has discouraged certain financial institutions from investing in digital assets due to compliance concerns.

It’s true that there have been some small amount of illicit activity in crypto, but it’s actually less than 1% from what we’ve seen. If you look at illicit uses of cash, it’s oftentimes more than that.

Brian Armstrong

Brian Armstrong acknowledged instances of inappropriate behavior in the crypto business, stating that there have been “bad actors.” He notably mentioned Binance, the collapse of the FTX crypto exchange, and the legal difficulties encountered by its creator, Sam Bankman-Fried, who was convicted on fraud charges.

Coinbase’s expansion in the UK

Brian Armstrong is in the United Kingdom for the Global Investment Summit, which aims to encourage international investment in the country. Notably, Coinbase is the only DeFi company to be invited to the summit, which Armstrong sees as an endorsement for the company but not necessarily for the broader crypto market.

Regarding U.K. Prime Minister Rishi Sunak’s stance on digital currencies, Armstrong stated that Coinbase is boosting its investments in the U.K. in response to Sunak’s leadership.

There is an ongoing movement in the United Kingdom to regulate digital assets such as cryptocurrencies and stablecoins. Meanwhile, Coinbase is embroiled in a legal battle with the Securities and Exchange Commission on allegations that its platform violated securities laws.

Regarding this, Armstrong expressed confidence in Coinbase’s ability to defend itself against the lawsuit. Furthermore, he refuted the notion that Coinbase was compelled to relocate overseas due to SEC actions, adding that the organization continues to make substantial investments in its domestic market.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Florence Muchai

Florence is a crypto enthusiast and writer who loves to travel. As a digital nomad, she explores the transformative power of blockchain technology. Her writing reflects the limitless possibilities for humanity to connect and grow.

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