Binance co-founder Changpeng Zhao's resignation from the crypto exchange is an opportunity to start a new chapter for the industry, Coinbase (NASDAQ: COIN) CEO Brian Armstrong said on Tuesday, as he expressed confidence that the U.S. democratic system will soon have regulations in place.
Reflecting on his company's journey since its inception in 2012, Armstrong emphasized the importance of compliance in building a lasting enterprise.
In a statement, the Coinbase CEO said, "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 with our customers and following the rules."
As part of a plea agreement with the U.S. Department of Justice, Zhao has consented to resign from his role as CEO of Binance.
According to the DOJ, Binance has agreed to pay a $1.8 billion fine and comply with a forfeiture order to pay an additional $2.5 billion.
Armstrong further commented on the challenges of adhering to compliance, noting the difficulty and expense involved.
"It's more difficult and expensive to take a compliant approach. You can't launch every product that customers want when it's illegal," he stated. "Today's news reinforces that doing it the hard way was the right decision. We now have an opportunity to start a new chapter for this industry."
Paul Grewal, Coinbase's Chief Legal Officer, seized the moment to critique the U.S. government's handling of the crypto industry.
He expressed concerns about the current regulatory approach in the U.S., stating, "The U.S. regulation by enforcement-only approach has only increased consumer risk and driven customers and innovation out of the country. Legislation is essential for safeguarding consumers and fostering a responsible marketplace in America."