- He sees a bright future for US-based companies that play by the rules
- SEC claims Coinbase operated as an unregistered broker, exchange, clearinghouse
The crypto industry can finally turn the page on bad actors after Binance’s recent settlement with the US Department of Justice, according to Coinbase CEO Brian Armstrong, CoinDesk reported, citing an interview with CNBC International.
Taking your business offshore ‘doesn’t work’
According to him, the enforcement action against Binance and FTX shows that taking your business offshore doesn’t work. Both of these companies were based in offshore zones: FTX was in the Bahamas and Binance was based in Hong Kong and mainly focused on business in the Asia Pacific region.
Armstrong said that the crypto industry has seen its share of bad actors, adding:
We’ve had a moment recently with the enforcement action against Binance that’s allowing us to turn the page on that. Sometimes it’s easy to get big fast by skirting the rules but you’ll always come crashing back down to reality.
According to Coinbase’s CEO, the time has come for US-based companies that have always played by the rules to grow.
SEC took aim at Coinbase in June
Armstrong’s comments seem perplexing considering the fact that his exchange was sued by the US Securities and Exchange Commission (SEC) in June on allegations of violating federal securities laws. The regulator had taken aim at Binance just one day earlier. It alleges that Coinbase operated as a clearinghouse, an exchange, and an unregistered broker at the same time.
Unwavering commitment to US business
Armstrong has a positive look on the case's outcome, stating that it would encourage regulatory clarity in the US. Coinbase retains an unwavering commitment to its US business despite the legal troubles and its strategy to grow in the UK, its second-biggest market.
Armstrong added the efforts to start a spot-bitcoin ETF are critical for crypto because such a platform would bring in fresh sources of capital.
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