Brian Armstrong, the CEO of Coinbase, has expressed satisfaction with his company’s decision to adhere to United States money transmitter licensing laws in light of the recent criminal charges against rival exchange Binance.
In a social media post on November 21, Armstrong commented on Binance’s guilty plea to criminal charges, emphasizing that Coinbase’s commitment to obtaining money transmitter licenses, despite the competitive disadvantage it posed, was the right move.
Armstrong asserted that embracing compliance was essential for Coinbase to establish itself as a enduring company. Furthermore, he highlighted the steps taken by his team to acquire licenses, hire compliance and legal teams, and establish a brand known for “following the rules.”
Coinbase CEO Brian Armstrong Stands Firm on Compliance Despite Growth Setbacks
While acknowledging that this compliance-focused strategy slowed down Coinbase’s growth compared to faster-moving competitors, Armstrong defended the approach, citing a belief in the importance of adhering to the rule of law.
Despite the challenges and expenses associated with a compliant approach, Armstrong criticized the lack of regulatory clarity in the U.S., suggesting that it forces American users to turn to unregulated offshore exchanges like Binance.
He expressed hope that the resolution of the U.S. criminal case against Binance could serve as a catalyst for more regulatory clarity in the industry.
Coinbase CEO Addresses Regulatory Concerns Amid SEC Lawsuit, Binance Guilty Plea
Armstrong has previously voiced concerns about the lack of regulatory clarity in the U.S., attributing it to a significant portion of crypto transactions being conducted offshore. It’s worth noting that the Securities and Exchange Commission has filed a lawsuit against Coinbase for alleged violations of U.S. securities laws, unrelated to issues of the Bank Secrecy Act or money transmitter licensing.
On November 21, the Department of Justice announced that Binance had agreed to plead guilty to violating the U.S. Bank Secrecy Act and serving U.S. customers without obtaining the necessary money transmitter licenses.