Binance settlement ‘net positive’ cryptocurrency industry – Mike Novogratz
Binance's $4.3 billion settlement with the United States Department of Justice (DOJ) is a positive step for the company and the broader cryptocurrency industry, according to Galaxy Digital's Mike Novogratz.
In an interview with Bloomberg on November 29, the CEO of a cryptocurrency investment firm expressed his belief that the high-profile settlement should convince concerned investors and users of international exchanges:
“I think they are vulnerable in many ways. People were worried about interactions with Binance. There's a lot to worry about now.”
Regulatory oversight continues to take center stage in the United States, with Novogratz accounting for major exchange-related investment firms as well as traditional finance (TradFi) players.
Binance did not steal money.
Galaxy Digital's CEO said a rational approach underpinned by investment and relationships with companies that “take their work seriously” remains key, stressing that mainstream finance has found itself on the wrong side of regulators in recent years.
“If you go through the list of TradFi banks that have been banned or fined by various regulators in the last 24 months, it's a staggering list. So you're not looking for zero errors, otherwise there's no one to deal with,” Novogratz said.
Related: FTX collapse, Binance's US settlement presents strong case for MiCA regulations
Similar to FTX, concerns about Binance being shut down or the exchange “stealing people's money” were not the case, he added.
“It came up with some pretty serious violations of KYC [Know Your Customer] protocols, and they've worked to correct them, they've paid their fines, and they're moving forward,” said the Galaxy Digital CEO.
“I think it's a good positive for their company. I think it's positive for our industry.
Bitcoin Price ‘Will Go Much Higher'
Novogratz also has a Bitcoin (BTC) exchange-traded fund (ETF) approved in the US and the looming 2024 mining reward halving.
“A lot of good things are happening for Bitcoin. We're going to get an ETF. There are a lot of expectations, and some of them are built into the price,” Novogratz said.
Related: Why Binance's US Plea Agreement Could Be Positive for Crypto Adoption
The investor added that if the EFF is approved, several investment and asset managers such as BlackRock, Fidelity, ARK Invest and Galaxy Digital will mobilize their sales forces to convince people to accept Bitcoin.
“Prices are going to go up significantly, especially now that the Fed is probably cutting rates. Can we go back to old highs by this time next year? Of course we can.
Novogratz also noted that Bitcoin's halving could set things up for an “amazing story,” with the 2024 US elections likely to play a role.
“That uncertainty should help Bitcoin with the US, Europe and Japan still not getting close to being fiscally responsible, which is why people invested in Bitcoin in the first place,” Novogratz said.
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