With the stunning news that rival crypto exchange Binance has been hit with criminal charges in the U.S., Coinbase CEO Brian Armstrong sees vindication in his company’s slower, compliance-focused approach.
In a tweet shortly following the news regarding Binance CEO’s departure on Tuesday, Armstrong laid out why he believes Coinbase’s cautious strategy will pay off long-term, even if it sacrifices short-term growth.
- Armstrong said he realized early on that Coinbase would need to “embrace compliance” and get proper licenses to become a “generational company.” This meant moving slower than others at times.
- Becoming a public company in 2021 forced even more transparency and trust-building with customers around following rules. Again, this restricted Coinbase’s tempo.
- He admits that being compliant is “more difficult and expensive.” The exchange can’t offer every new crypto product consumers want if it’s still illegal.
- But Armstrong said taking the harder route of full compliance was the “right decision” because Coinbase believes in the rule of law.
The DOJ charges allege Binance intentionally avoided regulatory oversight so it could offer U.S. users access to crypto trading without proper anti-money laundering safeguards.
Coinbase CEO says they have the opportunity to start a new chapter
Armstrong sees the action against the world’s largest exchange as justification for Coinbase’s approach. He also hopes it serves as a catalyst for regulators to finally provide clear crypto rules so more compliant platforms can thrive stateside.
- He said Coinbase “took a lot of arrows” due to the lack of U.S. crypto regulation but remained committed to building its business properly under existing law.
- With Binance’s legal troubles, Armstrong believes Coinbase now has “an opportunity to start a new chapter for this industry.”
- He called on regulators to provide the clarity needed so “Americans should not have to go to offshore, unregulated exchanges to benefit from this technology.”
Armstrong closed by reaffirming Coinbase’s commitment to harnessing crypto and decentralization to update the global financial system over the long haul.