Brian Armstrong said that although there are bad actors in the market, it’s wrong to say that crypto is predominantly used for illicit activities such as fraud, money laundering, and terrorist financing.
On Monday, November 27, Coinbase CEO Brian Armstrong shared his opinion on the recent Binance settlement, stating that the crypto industry can finally close the chapter and look beyond.
Coinbase CEO Speaking on the Binance Case
“The enforcement action against Binance allows us to turn the page on that and hopefully close that chapter of history,” during an interview with CNBC’s Joumanna Bercetche.
Armstrong emphasized the significant role of various crypto companies in shaping the global crypto economy and transforming the financial system, particularly noting the prevalence of smaller startups. He underscored the importance of regulatory clarity, anticipating that it would contribute to increased investment, particularly from institutional sources.
Last week, the US Department of Justice imposed a $4 billion settlement on Binance, leading to the resignation of its founder and CEO, Changpeng Zhao, who pleaded guilty to charges related to money laundering violations. The government alleged that Binance violated the US Bank Secrecy Act and contravened sanctions imposed on Iran.
Armstrong rebutted the notion that cryptocurrencies are predominantly utilized for illicit activities such as fraud, money laundering, and terrorist financing. Speaking to CNBC, Armstrong added:
“It’s true that there have been some small amount of illicit activity in crypto but it’s actually less than 1% from what we’ve seen. If you look at illicit uses of cash it’s oftentimes more than that”.
He acknowledged that certain individuals have acted as “bad actors,” citing instances such as the situation with Binance and the downfall of the crypto exchange FTX, along with the conviction of its founder Sam Bankman-Fried on charges of fraud.
Binance CEO Praises UK Government
Armstrong is currently in the UK for the Global Investment Summit, a gathering of business leaders aimed at promoting foreign investment in the UK.
Among the participants, Coinbase stands out as the sole cryptocurrency company invited to the summit, which Armstrong sees as an “endorsement” for the company, though not necessarily for the broader industry.
Impressed by the leadership of UK Prime Minister Rishi Sunak in the realm of digital currencies, Armstrong mentioned that Coinbase is increasing its investments in the UK. The UK is actively working to regulate digital assets, including cryptocurrencies and stablecoins.
Meanwhile, Coinbase is facing a legal dispute with the US Securities and Exchange Commission, with allegations of violating securities laws with its platform.