Major Binance rival Coinbase took advantage of the problems of its competitor to alert users on the need to regulate the crypto market.
According to Brian Armstrong, CEO of Coinbase, the need for transparency and clarity in crypto is more greater than ever before. These principles, he added, were critical in providing Coinbase regulatory and legal compliance departments that have made Coinbase unique since its founding in 2012.
Armstrong noted that Coinbase, unlike Binance, is a public company.
On Nov. 21, Binance Holdings Limited pleaded guilty and agreed to pay $4.3 billion settlement to resolve the U.S. Department of Justice’s investigation against the exchange.
On the heels of this decision, Binance founder and CEO Changpeng Zhao pleaded guilty to charges of facilitating money laundering and agreed to pay a personal fine of $50 million. He has subsequently left his position as CEO of the exchange. Zhao stands accused of willfully violating the Bank Secrecy Act, “resulting in Binance’s failure to implement an effective anti-money laundering program.”
In response to these developments, Armstrong added that the situation around crypto legislation is likely entering a new phase, one that is indicative of the transparent regulatory framework needed to advance markets for digital assets in the U.S.
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