After its $4.3 billion settlement with US authorities, Galaxy Digital CEO Mike Novogratz believes 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.”
The price of bitcoin “will be significantly higher.”
Novogratz also considered the impending 2024 mining reward halving and the ongoing expectation that a Bitcoin BTC$37,826 exchange-traded fund (ETF) would be approved in the United States.
Numerous positive developments are occurring for Bitcoin. We intend to purchase an ETF. A portion of the excitement is already included in the price, according to Novogratz.
The investor further stated that several asset managers and investment firms, such as BlackRock, Fidelity, ARK Invest, and Galaxy Digital, will mobilize their sales teams to persuade people to embrace Bitcoin if and when an ETF is approved:
“The price will be significantly higher, especially at a time when the Fed is likely to cut rates.” Could we return to previous highs by this time next year? We could, of course.”
In addition, Novogratz said that the Bitcoin halving is a prelude to “a wonderful story” and that the US elections of 2024 might also be significant.
The fact that the United States, Europe, and Japan are still far from being fiscally responsible is what initially attracted investors to Bitcoin, so this uncertainty, according to Novogratz, should help the cryptocurrency.
Conclusion
The Binance settlement is a significant development for the cryptocurrency industry. It is the first major enforcement action against a cryptocurrency exchange by the SEC and the DOJ, and it could have a major impact on the industry. While some experts believe that the settlement is a positive development, others are concerned that it could set a precedent for more aggressive enforcement action against cryptocurrency exchanges in the future. Only time will tell what the long-term impact of the settlement will be.
