Foreign News: Binance Admits Guilt, Opportunity and Challenge for Coinbase

Cryptocurrency-focused media DL News states, “Binance, the world’s largest cryptocurrency exchange by trading volume, admitting guilt and deciding to withdraw from the U.S. market in the agreement process with the U.S. government, presents an opportunity for Coinbase to regain lost market share.” Binance recently agreed to pay a $4.3 billion fine to the U.S. government, participate in a three-year intensive monitoring program, have CEO Zhao Changpeng resign, and completely withdraw from the U.S. market, acknowledging guilt in charges including violating anti-money laundering laws. Aaron Unterman, Managing Director of XReg Consulting, a cryptocurrency regulatory compliance consulting firm, explains, “Coinbase, following the compliance route, incurred higher costs compared to Binance, a non-compliant entity. It was naturally at a disadvantage both in terms of product composition and market share. However, Binance’s admission of guilt has created opportunities for other players.” He adds, “The acknowledgment of guilt by Binance is seen as potentially increasing the likelihood of approval for a Bitcoin spot ETF by the U.S. Securities and Exchange Commission (SEC). Nevertheless, Coinbase may face intense fee competition against BlackRock ETFs and others, and the current legal battle with the SEC appears challenging.