Crypto Can Move on After Binance Settlement, Coinbase CEO Asserts

Brian Armstrong, the CEO of Coinbase Global Inc. (NASDAQ: COIN), says that now that Binance reached a settlement with the U.S. Department of Justice, the cryptocurrency industry can move on from a chapter in its history that has been characterized by a number of problems and scandals that nearly brought the industry to its knees. He was speaking on the sidelines of a Global Investment Summit in the United Kingdome.

Armstrong pointed out that plenty of crypto companies were championing innovation and helping to shape the blockchain and crypto industries while transforming the financial system of the world. However, he admitted that many were small startups and having clear regulatory frameworks in place would go a long way toward attracting major investments into the crypto industry, especially from institutional investors.

Last week, the U.S. Department of Justice (DOJ) reached a settlement with Binance in which the platform agreed to pay $4 billion in forfeitures and penalties. The CEO and founder of the exchange, Changpeng Zhao, also agreed to relinquish his position in the company. CZ, as he is popularly called, pleaded guilty to charges related to violating laws against money laundering. This settlement is the largest ever for the DOJ in such cases. Binance was also accused of violating the sanctions imposed on Iran.

Coinbase’s CEO was vehement in his rejection of claims that cryptocurrencies were largely used for illicit purposes, such as terrorist financing, fraud and money laundering. He asserted that such claims are made by detractors and financial institutions that are hesitant to join crypto due to concerns regarding compliance issues. However, CZ admitted that there had been cases of crypto being used for illegal activities but noted that such cases amounted to no more than 1% of all the crypto activity on record.

Armstrong pointed out that cash is used for nefarious ends at higher rates. He also conceded that a number of players within the crypto space were “bad actors.” This was in reference to FTX, the exchange which collapsed in spectacular fashion and saw its CEO and founder Sam Bankman-Fried found guilty on fraud charges. He also mentioned the recent case of Binance and its settlement with U.S. author ities.

It should be noted that of all crypto companies currently in operation, Coinbase stood out as the only one given an invite to the summit in the UK. Armstrong sees this as an endorsement of the entity he heads. Coinbase is making major investments in the United Kingdom, and Armstrong reveals that he is impressed by the leadership exhibited by Prime Minister Rishi Sunak.

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