Brian Armstrong, CEO of Coinbase Global Inc., speaks during the Messari Mainnet Summit in New York, Thursday, September 21, 2023.
Michael Nagle | Bloomberg | Getty Images
The crypto industry can finally close the chapter on a litany of scandals and problems after Binance was hit with a historic settlement by the US Department of Justice, Coinbase CEO Brian Armstrong said on Monday.
“The enforcement action against Binance, that allows us to turn the page on that and hopefully close that chapter of history,” Armstrong said in an interview with CNBC’s Joumanna Bercetche.
“There are many crypto companies that are helping to build the crypto economy and change our financial system globally. But many of them are still small startups.”
“I think regulatory clarity will help bring in more investment, especially from institutions,” he added.
Binance was hit by the US Department of Justice with a $4 billion settlement last week that saw its founder and CEO Changpeng Zhao step down and plead guilty to charges of money laundering violations.
The government accused Binance of violating the US Bank Secrecy Act and violating sanctions on Iran.
Armstrong pushed back at the suggestion that crypto is primarily used for nefarious purposes such as fraud, money laundering and terrorist financing, a common refrain from financial firms that have shied away from jumping into the space due to compliance concerns.
“It’s true that there has been some illegal activity in crypto but it’s actually less than 1% of what we’ve seen. If you look at illegal uses of cash, it’s often more than that,” Armstrong told CNBC.
Some players, he admitted, were “bad actors”, referring to the Binance case, as well as the collapse of crypto exchange FTX and the sentencing of its founder Sam Bankman-Fried to prison on charges of fraud.
Armstrong is in Britain on Monday for the Global Investment Summit, which brings together a host of business leaders to encourage foreign investment in the UK.
Coinbase was the only crypto company invited to the summit, which Armstrong called “support” for the company, but not necessarily the broader industry.
Armstrong said he is “impressed” with UK Prime Minister Rishi Sunak’s leadership when it comes to digital currencies and that Coinbase is investing more in the UK as a result.
The UK is looking to bring digital assets such as cryptocurrencies and stablecoins into the regulatory fold.
Coinbase is currently engaged in a tense legal battle with the US Securities and Exchange Commission over allegations that the company is violating securities laws through its platform.
On that point, Armstrong said he feels very good about Coinbase’s chances of fighting the lawsuit. He also disputed the idea that the SEC’s actions forced Coinbase to move overseas, adding that the company is still investing actively in its home market.