After its $4.3 billion settlement with US authorities, Galaxy Digital CEO Mike Novogratz believes Binance has satisfied regulators and users.
Binance has satisfied regulators and users
According to Galaxy Digital’s Mike Novogratz, Binance’s $4.3 billion settlement with the US Department of Justice (DOJ) is a positive step for the company and the wider cryptocurrency industry.
In an interview with Bloomberg on November 29, the CEO of the cryptocurrency investment firm stated that the high-profile settlement should reassure concerned investors and users of the global exchange:
“I believe they’ve been de-risked in a variety of ways.” People were concerned about doing business with Binance. There’s a lot less to be concerned about now.”
Novogratz also discussed the factors that traditional finance (TradFi) players and large investment firms dealing with exchanges should take into account since regulatory oversight remains a major concern in the US.
Money wasn’t stolen by Binance
The CEO of Galaxy Digital emphasized that while mainstream finance has also recently found itself in hot water with regulators, a reasonable approach supported by investments and relationships with businesses that “take their jobs seriously” remains crucial.
“The list of TradFi banks that have been penalized or sanctioned by various regulators over the past 24 months is startling. Therefore, you can’t aim for perfection because if you did, there wouldn’t be anyone to deal with,” Novogratz stated.
He continued by saying that worries about Binance possibly being shut down or that, in a manner akin to FTX, the exchange had “stolen people’s money” were unfounded:
According to the CEO of Galaxy Digital, “It came down to some pretty serious violations of KYC [Know Your Customer] protocols, and they’ve worked to correct them, they paid their fine, and they’re moving on.”
“I believe it will benefit their business overall. It’s beneficial overall for our industry.”
