Coinbase CEO Brian Armstrong has touted his exchange’s compliance-first approach in response to the problems faced by rival Binance.
In a November 21 rack On social media platform
“Since Coinbase was founded in 2012, we have taken a long-term view. I knew we had to embrace compliance to become a generational company that has stood the test of time,” Armstrong wrote. “We got the licenses, hired the compliance and legal teams and made it clear that our brand is about trusting our customers and following the rules. ”
This approach, Armstrong noted, has proven accurate in light of the problems Binance has faced, saying:
“Today’s news confirms that doing it the hard way was the right decision. We now have the opportunity to start a new chapter for this sector. We’ve taken a lot of heat here in the US over the lack of regulatory clarity, and I hope today’s news will serve as a catalyst to finally make that happen.”
On November 20, Binance, the largest cryptocurrency exchange by trading volume, agreed to a more than $4 billion settlement with US authorities, with founder Changpeng “CZ” Zhao resigning as CEO after pleading guilty to money laundering charges.
Authorities, including the Commodity Futures Trading Commission (CFTC) and the Department of Justice, detailed how the exchange violated several financial laws and failed to prevent trades involving sanctioned users and individuals in restricted regions.
Calls for regulation
Coinbase’s CEO also took the opportunity to demand that US authorities ensure an adequate regulatory environment for the emerging industry to thrive.
“Americans should not have to go to unregulated exchanges offshore to take advantage of this technology. This industry should be built here in America, in a compliant manner, according to U.S. law,” Armstong wrote.
Coinbase’s Chief Legal Officer Paul Grewal also echoed Armstrong’s sentiment: proverb:
“U.S. enforcement-only regulation has only increased consumer risk and driven customers and innovation out of the country. Legislation is essential to protecting consumers and promoting a responsible marketplace in America.”