Binance payments prove that ‘following the rules’ is the right decision – Coinbase CEO

The CEO of the crypto exchange Coinbase, Brian Armstrong, thinks that his company has made the right decision to comply with the rules of the United States money transfer license.

In a post on social media on November 21, Armstrong said that the rival exchange Binance was guilty of criminal charges, saying that he was happy that the decision to get his own exchange money transfer licenses, even if it puts the company in competition. Damage.

In the year Since founding Coinbase in 2012, we have taken a long-term view. I knew we needed to embrace compliance to be a generational company that stood the test of time. We got the license, hired compliance and legal teams, and made it clear that our brand is about trust…

— Brian Armstrong ️ (@brian_armstrong) November 21, 2023

“I knew we needed to embrace compliance,” Armstrong said. […] By following the rules.”

Armstrong admits the group's compliance strategy has slowed the company's growth, saying, “We can't always move as quickly as others” because “taking a compliance approach is very difficult and expensive.” However, Armstrong said his group's approach was justified because “we believe in the rule of law.”

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Armstrong took aim at what he sees as a lack of regulatory transparency in the US, which he says is driving users to offshore exchanges like Binance. “Americans don't have to go overseas to benefit from this technology,” he said. However, he struck a positive tone, saying that the settlement of US criminal charges against Binance could ultimately be a “motivator” for greater regulatory transparency.

Armstrong said U.S. regulations lack transparency and have driven “95%” of crypto transactions offshore. The Securities and Exchange Commission has filed charges against Coinbase for violating US securities laws. However, these claims are not related to Bank Secrecy Act violations or money transmitter licensing issues.

On November 21, the Department of Justice announced that Binance had agreed to plead guilty to violating the US Bank Secrecy Act and failing to obtain proper authorization to transfer money to US customers.