Brian Armstrong’s Compliance Stance
You believed that embracing compliance would help your company remain trustworthy over time, and, therefore, decided to obtain money transmitter licenses for your exchange. This decision put you at a disadvantage compared to other exchanges, but you felt that following the rules and becoming a more compliant company was more important for future success.
U.S. Regulatory Clarity
You criticized the lack of regulatory clarity in the U.S. and how this has led to Americans using offshore exchanges like Binance. You believe that resolving the criminal case against Binance could lead to more regulatory clarity and potentially prevent users from turning to offshore unregulated exchanges.
Regulatory Challenges
You have stated that U.S. regulations have pushed “95%” of crypto transactions offshore. Although the Securities and Exchange Commission has taken action against Coinbase for allegedly violating U.S. securities laws, this is unrelated to Bank Secrecy Act or money transmitter licensing issues.
Guilty Plea by Binance
On Nov. 21, the Department of Justice announced that Binance has pleaded guilty to violating the U.S. Bank Secrecy Act and serving U.S. customers without obtaining the proper money transmitter licenses.
Hot Take
Armstrong’s decision to prioritize compliance was motivated by a long-term view of the company’s success, even at the cost of slower growth and increased expenses. His stance on the need for regulatory clarity in the U.S. reflects the ongoing challenges faced by the crypto industry in navigating complex and evolving legal frameworks.
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