{"id":25408,"date":"2023-11-21T22:11:38","date_gmt":"2023-11-21T22:11:38","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/binance-charges-prove-following-the-rules-was-the-right-decision-coinbase-ceo\/"},"modified":"2023-11-21T22:11:40","modified_gmt":"2023-11-21T22:11:40","slug":"binance-charges-prove-following-the-rules-was-the-right-decision-coinbase-ceo","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/binance-charges-prove-following-the-rules-was-the-right-decision-coinbase-ceo\/","title":{"rendered":"Binance charges prove ‘following the rules’ was the right decision: Coinbase CEO"},"content":{"rendered":"

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Brian Armstrong, CEO of crypto exchange Coinbase, thinks<\/a> that his company made the right decision to comply with U.S. money transmitter licensing laws.<\/p>\n

In a Nov. 21 social media post, Armstrong weighed in on the news that rival exchange Binance is pleading guilty to criminal charges, stating that he is glad his own exchange decided to obtain money transmitter licenses, even though it put the company at a competitive disadvantage.<\/p>\n

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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. We got the licenses, hired the compliance and legal teams, and made it clear our brand was about trust\u2026<\/p>\n

\u2014 Brian Armstrong \ufe0f (@brian_armstrong) November 21, 2023<\/a><\/p><\/blockquote>\n

\u201cI knew we needed to embrace compliance to become a generational company that stood the test of time,\u201d Armstrong stated, adding that his team \u201cgot the licenses, hired the compliance and legal teams, and made it clear our brand was [\u2026] Following the rules.\u201d<\/p>\n

Armstrong acknowledged that his team’s compliance strategy slowed the growth of the company, stating that \u201cwe couldn’t always move as quickly as others,\u201d as it\u2019s \u201cmore difficult and expensive to take a compliant approach.\u201d However, Armstrong claimed his team\u2019s approach was correct because \u201cwe believe in the rule of law.\u201d<\/p>\n

Related: <\/strong>SEC raises concerns over Coinbase in objection to Celsius restructuring plan<\/strong><\/em><\/p>\n

Armstrong also took aim at what he sees as a lack of regulatory clarity in the U.S., which he claims is pushing users to offshore exchanges like Binance. \u201cAmericans should not have to go to offshore unregulated exchanges to benefit from this technology,\u201d he stated. However, he also struck a positive tone, claiming that the resolution of the U.S. criminal case against Binance may finally be the \u201ccatalyst\u201d for more regulatory clarity.<\/p>\n

Armstrong has claimed that U.S. regulations lack clarity and have driven \u201c95%\u201d of crypto transactions offshore. The Securities and Exchange Commission has filed suit against Coinbase for allegedly violating U.S. securities laws. However, these claims aren’t related to violations of the Bank Secrecy Act or money transmitter licensing issues.<\/p>\n

On Nov. 21, the Department of Justice announced that Binance has agreed to plead guilty to violations of the U.S. Bank Secrecy Act and to serving U.S. customers without obtaining the proper money transmitter licenses.<\/p>\n<\/div>\n