It has been just revealed the fact that Brian Armstrong says that Binance’s latest issues and CZ’s guilty plea are vindicating Coinbase’s strategy of regulatory compliance. Check out the latest reports about this below.
Brian Armstrong addresses Coinbase’s regulatory compliance
Brian Armstrong, the CEO of the largest US-based cryptocurrency exchange, considers the admission of guilt by Binance CEO Changpeng Zhao and his firm to federal charges as a significant development in the digital asset industry.
Binance agreed on Tuesday to pay over $4 billion in a settlement after confessing to engaging in money laundering, violating sanctions, and running an unregistered money-transmitting business.
Additionally, Zhao acknowledged that he failed to maintain an effective anti-money laundering (AML) program and resigned as CEO of the world’s biggest cryptocurrency exchange.
In a new interview on CNBC, Armstrong says the event gives significance to Coinbase’s efforts to abide by US laws.
“For us at Coinbase, this is really a vindication of the long-term strategy that we have taken to focus on compliance, make sure we’re building a trusted company. I have to tell you, over the last 10 years since we have been doing that, it has been frustrating at times.
We have seen competitors come on the scene and not take that approach. Sometimes, they’re able to offer products that we didn’t think were legal and in this environment, we’re seeing that regulators were finally acting and they’re creating a level playing field.”
Armstrong believes that centralized crypto services, such as exchanges, should abide by the same regulations as traditional financial services.
He thinks it is essential for the industry to comply with the existing laws regarding Anti-Money Laundering (AML) and Know Your Customer (KYC) practices.
Additionally, he advocates for greater clarity in the areas where the law is not yet clear, such as commodities and securities.
Armstrong also suggests that new legislation is needed, and Congress can be instrumental in providing the necessary guidance.
