In the wake of Binance's substantial penalty from the Department of Justice and the stepping down of its CEO, Changpeng Zhao, Coinbase (NASDAQ:COIN)'s Brian Armstrong has underscored the importance of compliance and economic freedom as foundational principles for his company. Since its inception in 2012, Coinbase has consistently focused on adhering to regulations by obtaining the necessary licenses and building a robust legal team.
Armstrong believes that operating within the law is critical, even if it means slower product development. He sees the recent turmoil as an opportunity to encourage the establishment of clear-cut regulations in the United States, aiming to diminish dependence on unregulated international platforms. His commitment to following US regulations is unwavering, and he places his confidence in the democratic process to maintain economic freedom within the cryptocurrency industry.
Yesterday, Armstrong endorsed his company’s regulatory compliance after competitor Binance admitted criminal responsibility. Highlighting his aim for Coinbase to be a generational entity and emphasizing trust in their brand, Armstrong detailed their efforts in obtaining necessary licenses and establishing a strong legal framework, accepting slower progress as a trade-off for adherence to the law.
Also yesterday, the Department of Justice announced Binance’s admission of guilt regarding Bank Secrecy Act violations and operating without money transmitter licenses. Armstrong criticized ambiguous American regulations that he feels push investors towards offshore unregulated exchanges but hoped that Binance’s situation might lead to more definitive guidelines.
Armstrong referenced SEC objections during the Celsius restructuring case as an example of unclear regulation contributing to a majority of crypto transactions moving offshore. Despite facing an SEC lawsuit over alleged securities law violations today, Coinbase stands clear of accusations related to money transmission or Bank Secrecy Act violations.
The recent events have highlighted the contrasting approaches of major players in the crypto space towards regulation and compliance. Armstrong's remarks over these past two days reflect a strategic stance that prioritizes long-term stability and legitimacy over rapid expansion, signaling Coinbase's dedication to aligning with US regulatory frameworks.
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