- Coinbase CEO Brian Armstrong stated in an interview on Monday that the sanctions imposed on Binance might allow the crypto industry to turn the page on a series of scandals and issues.
- The government accused Binance of violating the U.S. Banking Secrecy Act and violating sanctions against Iran.
- Armstrong is in the United Kingdom on Monday for the UK Global Investment Summit, which brings together a series of business leaders to promote foreign investment.
Coinbase CEO Brian Armstrong shared his assessments regarding the issues faced by Binance in a statement on Monday.
Armstrong Expresses Views on Binance
In a statement on Monday, Coinbase CEO Brian Armstrong mentioned that the historic deal struck by the U.S. Department of Justice with Binance could finally close a chapter on a series of scandals and issues in the crypto industry.
In an interview, Armstrong said, “The sanctions imposed on Binance allow us to turn a new page on this matter and hopefully close this chapter in history,” and added: “This sanction against Binance gives us the opportunity to close this page and hopefully close this chapter in history.”
Armstrong continued, “There are many crypto companies that help build the crypto economy and change our global financial system. However, many of them are still small startups. I believe regulatory clarity will especially help attract more investment from institutions.”
Last week, Binance was hit with a $4 billion deal by the U.S. Department of Justice, leading to the resignation of its founder and CEO, Changpeng Zhao, and accepting charges of money laundering violations.
The government accused Binance of violating the U.S. Banking Secrecy Act and violating sanctions against Iran. Armstrong rejected the suggestion that crypto is commonly used for malicious purposes such as fraud, money laundering, and terrorist financing; this is a common hope among financial companies that refrain from entering the sector due to compliance concerns.
Armstrong said, “It’s true that there is a small amount of malicious activity in crypto, but less than what we see, actually less than 1%. When you look at malicious uses of cash, it’s often more than that.”
Some players acknowledged that there are “bad actors,” such as the Binance case, the collapse of the FTX crypto exchange, and the imprisonment of founder Sam Bankman-Fried on fraud charges.
Armstrong Acts to Encourage Foreign Investment
Armstrong is in the United Kingdom on Monday for the UK Global Investment Summit, which brings together a series of business leaders to promote foreign investment. Coinbase was the only crypto company invited to the summit, and Armstrong described this as an “endorsement” for the company but not for the industry as a whole.
Armstrong mentioned that he was influenced by UK Prime Minister Rishi Sunak’s leadership on digital currencies and that Coinbase has invested more in the United Kingdom as a result. The UK is attempting to include digital assets, cryptocurrencies, and stablecoins in its regulatory framework.
Coinbase is currently in a tense legal battle with the U.S. Securities and Exchange Commission (SEC) over allegations that the company’s platform violates securities laws. Regarding this, Armstrong said he feels very good about Coinbase’s chances of fighting the lawsuit. He also rejected the idea that the SEC’s actions forced Coinbase to move abroad, stating that the company is still actively investing in its main market.
