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Binance settlement ‘net positive’ for cryptocurrency industry — Mike Novogratz

Binance settlement ‘net positive’ for cryptocurrency industry — Mike Novogratz


Binance’s $4.3 billion settlement with the United States Department of Justice (DOJ) is being hailed as a positive move for the company and the wider cryptocurrency industry, according to Galaxy Digital’s Mike Novogratz.

In an interview with Bloomberg on Nov. 29, the CEO of the cryptocurrency investment firm expressed his belief that the high-profile settlement should assuage concerned investors and users of the global exchange:

“I think they’re de-risked in lots of ways. People were worried about dealing with Binance. There’s a lot less to worry about now.”

Novogratz also weighed in on the considerations for major investment firms dealing with exchanges, as well as traditional finance (TradFi) players, with regulatory oversight continuing to take center stage in the United States.

Binance didn’t steal money

The Galaxy Digital CEO said that a reasonable approach underpinned by investments and relationships with companies that “take their jobs seriously” remains key while stressing that mainstream finance has also found itself on the wrong side of regulators in recent years.

“If you went through the list of TradFi banks who have been sanctioned or fined by different regulators in the last 24 months, it’s a shocking list. So you’re not looking for zero mistakes, otherwise, there’d be no one to deal with,” Novogratz said.

Related: FTX collapse, Binance’s US settlement provide strong case for MiCA regulations

He added that concerns over Binance potentially being shut down or that the exchange had “stolen people’s money” in a situation similar to FTX simply was not the case:

“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,” the Galaxy Digital CEO said.

“I think it’s a net positive for their company. I think it’s a net positive for our industry.”

Bitcoin price “will be significantly higher”

Novogratz also weighed in continued anticipation of a Bitcoin (BTC) exchange-traded fund (ETF) being approved in the U.S. and the looming mining reward halving in 2024.

“There’s a bunch of good things happening for Bitcoin. We are going to get an ETF. There’s a lot of anticipation, and some of that’s built into the price,” Novogratz said.

Related: Why Binance’s US plea deal could be positive for crypto adoption

The investor added that if and when an ETF is approved, a number of investment and…

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