Binance Settlement A Pivotal Moment for Crypto Industry, Says Coinbase CEO
According to Brian Armstrong, CEO of Coinbase, the biggest cryptocurrency exchange located in the United States, the recent settlement by Binance, the largest cryptocurrency exchange in the world, has caused a stir in the digital asset space. Binance, under the leadership of CEO Changpeng Zhao (CZ), consented to an unprecedented $4 billion settlement, acknowledging its responsibility for money laundering, breaching sanctions, and running an unlicensed money-transmitting enterprise.
In a momentous move, CZ announced his resignation as CEO and admitted to having neglected to keep up a strong anti-money laundering (AML) program. Armstrong sees this disclosure as a game-changer for the bitcoin space. Coinbase has been pursuing regulatory compliance, and this settlement indicates a shift in that direction.
Vindication for Coinbase’s Strategy
According to Armstrong, Coinbase’s long-term plan to emphasize compliance and establish a reliable business has been validated by the incident. Since its competitors began using various strategies ten years ago, Coinbase has made a commitment to upholding regulatory norms, which has occasionally proven difficult. Leveling the playing field for businesses in the sector, the settlement highlights the significance of abiding by the law.
Armstrong highlights the requirement that centralized cryptocurrency services, including as exchanges, follow the same regulations as conventional financial services. Emphasizing the relevance of impending legislation in giving regulatory certainty, he pushes for clarification in areas of the law pertaining to commodities and securities.
The CEO of Coinbase feels that the sector needs to start again and comply with current regulations, especially when it comes to know-your-customer (KYC) and anti-money laundering (AML) procedures. One step in the right direction toward establishing a framework for regulatory compliance in the cryptocurrency industry is the settlement with Binance.
Armstrong looks to Congress to help provide clarity to the changing regulatory landscape around cryptocurrencies as authorities step in and new legislation approaches.
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Source: igaming
