Binance charges prove ‘following the rules’ was the right decision — Coinbase CEO

cointelegraph.com:

Brian Armstrong, CEO of crypto exchange Coinbase, thinks that his company made the right decision to comply with United States money transmitter licensing laws.

In a Nov. 21 social media post, Armstrong weighed in on the news that rival exchange Binance is pleading guilty to criminal charges, stating that he is glad his own exchange decided to obtain money transmitter licenses, even though it put the company at a competitive disadvantage.

Since the founding of Coinbase back in 2012 we have taken a long-term view. I knew we needed to embrace compliance to become a generational company that stood the test of time. We got the licenses, hired the compliance and legal teams, and made it clear our brand was about trust…

“I knew we needed to embrace compliance to become a generational company that stood the test of time,” Armstrong stated, adding that his team “got the licenses, hired the compliance and legal teams, and made it clear our brand was […] following the rules.”

Armstrong acknowledged that his team’s compliance strategy slowed the company’s growth, stating that “we couldn’t always move as quickly as others,” as it’s “more difficult and expensive to take a compliant approach.” However, Armstrong claimed his team’s approach was correct because “we believe in the rule of law.”

Related: SEC raises concerns over Coinbase in objection to Celsius restructuring plan

Armstrong also took aim at what he sees as a lack of regulatory clarity in the U.S., which he claims is pushing users to offshore exchanges like Binance. “Americans should not have to go to offshore unregulated exchanges to benefit from this technology,” he stated. However, he also struck a positive tone, claiming that the resolution of the U.S. criminal case