Coinbase champions regulatory compliance amid Binance woes – calls for clearer U.S. regulations Coinbase champions regulatory compliance amid Binance woes – calls for clearer U.S. regulations
Coinbase CEO Brian Armstrong said Binance's regulatory woes vindicates his firm's approach.
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Updated: Nov. 22, 2023 at 4:28 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Coinbase CEO Brian Armstrong has touted his exchange’s compliance-first approach following the issues that bedeviled rival Binance.
In a Nov. 21 statement on social media platform X, Armstrong pointed out that Coinbase embraced compliance since its launch in 2012 “to become a generational company that stood the test of time.”
“Since the founding of Coinbase back in 2012, we have taken a long-term view. I knew we needed to embrace compliance to become a generational company that stood the test of time,” Armstrong wrote. “We got the licenses, hired the compliance and legal teams, and made it clear our brand was about trust with our customers and following the rules. ”
This approach, Armstrong noted, has been proven right in light of the issues that have faced Binance, saying:
“Today’s news reinforces that doing it the hard way was the right decision. We now have an opportunity to start a new chapter for this industry. We took a lot of arrows operating here in the U.S. due to the lack of regulatory clarity, and my hope is that today’s news serves as a catalyst to finally achieve that.”
On Nov. 20, Binance, the largest crypto exchange by trading volume, agreed to a more than $4 billion settlement with the U.S. authorities, with its founder Changpeng ‘CZ’ Zhao resigning as CEO after pleading guilty to money laundering charges.
The authorities, including the Commodity Futures Trading Commission (CFTC) and the Department of Justice, detailed how the exchange violated several finance-related laws and failed to prevent transactions involving sanctioned users and individuals in restricted regions.
Calls for regulation
The Coinbase CEO also seized the opportunity to demand that U.S. authorities provide an adequate regulatory environment for the emerging industry to thrive.
“Americans should not have to go offshore unregulated exchanges to benefit from this technology. This industry should be built right here in America, in a compliant way, under U.S. law,” Armstong wrote.
Coinbase’s Chief Legal Officer Paul Grewal also echoed Armstrong’s sentiment, saying:
“The US regulation by enforcement-only approach has only increased consumer risk and driven customers and innovation out of the country. Legislation is essential for safeguarding consumers and fostering a responsible marketplace in America.”
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Coinbase
Coinbase is a digital currency exchange and wallet service that allows individuals to buy, sell, and store digital currencies, such as Bitcoin, Ethereum, and Litecoin.
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
Brian Armstrong, co-founder and CEO of Coinbase, stands at the forefront of the digital currency revolution.
Paul Grewal is the Chief Legal Officer of Coinbase where he is responsible for Coinbase’s legal, compliance, global intelligence, risk management and government relations groups.
Changpeng Zhao, popularly known as “CZ,” is a notable figure in the cryptocurrency world, primarily for founding and leading Binance, the world’s leading cryptocurrency exchange by trading volume.