Coinbase CEO: Binance Settlement to Clear Crypto of 'Bad Actors'

• Coinbase CEO Advocates for Regulatory Compliance Post-Binance Settlement
• Binance and FTX - Cautionary Tales
• Coinbase's Legal Battles and Future Prospects
• The Race for a Spot-Bitcoin ETF

Coinbase CEO Advocates for Regulatory Compliance Post-Binance Settlement

Brian Armstrong, the Chief Executive Officer of Coinbase (COIN), posits that the cryptocurrency sector can move beyond the negative impact of 'bad actors,' following the recent settling of issues between Binance and the U.S. Department of Justice. Armstrong's comments surfaced during his interaction with CNBC International at the Global Investment Summit held in London.

Binance and FTX - Cautionary Tales

Armstrong reflects on the enforcement actions taken against Binance, as well as the now-insolvent exchange, FTX$3.28 -5.38%. He emphasizes that taking a crypto business offshore doesn't guarantee success. Armstrong points out that while Binance is primarily an Asia-Pacific focused entity based out of Hong Kong, FTX originated from the Bahamas.

He further states, Sometimes it's easy to get big fast by skirting the rules, but you'll always come crashing back down to reality. He suggests that it's high time for U.S.-based companies that have complied with regulations from their inception to grow and thrive.

Coinbase's Legal Battles and Future Prospects

Despite differences with Binance's ongoing legal issues in the U.S., Coinbase is also persistently dealing with U.S. regulators. The contention arises from allegations of operating as an unregistered broker, exchange, and clearing agency simultaneously. However, Armstrong is confident about the final verdict of the case and believes it will reinforce regulatory clarity in the U.S.

The organization maintains its commitment to its U.S. operations, regardless of endeavors to expand in other jurisdictions. Armstrong has stated that Coinbase's second-largest market is the U.K., but the U.S. still remains vital. We started the company in the U.S. and we're committed to staying there and we're going to grow there because it's a big market, he emphasized.

The Race for a Spot-Bitcoin ETF

Armstrong also highlights the significance of launching a spot-bitcoin ETF, describing it as a monumental move for the industry. It'll bring in new sources of capital into crypto that aren't able to participate directly today and I think it'd be a legitimizing outcome for the industry, he ruminates.

Edited by Jonathan Stoker