Binance’s $4.3 billion settlement with the United States Department of Justice (DOJ) is being hailed as a constructive transfer for the corporate and the broader cryptocurrency industry, in accordance with Galaxy Digital’s Mike Novogratz.
In an interview with Bloomberg on Nov. 29, the CEO of the cryptocurrency funding agency expressed his perception that the high-profile settlement ought to assuage involved buyers and customers of the worldwide alternate:
“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 additionally weighed in on the concerns for main funding companies coping with exchanges, in addition to conventional finance (TradFi) gamers, with regulatory oversight persevering with to take heart stage within the United States.
Binance didn’t steal cash
The Galaxy Digital CEO stated {that a} affordable method underpinned by investments and relationships with firms that “take their jobs seriously” stays key whereas stressing that mainstream finance has additionally discovered itself on the unsuitable facet of regulators lately.
“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 stated.
Related: FTX collapse, Binance’s US settlement provide strong case for MiCA regulations
He added that issues over Binance doubtlessly being shut down or that the alternate had “stolen people’s money” in a state of affairs similar to FTX merely 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 stated.
“I think it’s a net positive for their company. I think it’s a net positive for our industry.”
Bitcoin value “will be significantly higher”
Novogratz additionally 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 stated.
Related: Why Binance’s US plea deal could be positive for crypto adoption
The investor added that if and when an ETF is authorized, plenty of funding and asset managers, together with the likes of BlackRock, Fidelity, ARK Invest and Galaxy Digital, will mobilize their gross sales forces to persuade folks to undertake Bitcoin:
“The price is going to be significantly higher, especially at a time when the Fed is probably cutting rates. Could we go to old highs by this time next year? Of course we could.”
Novogratz additionally famous that the Bitcoin halving units issues up for “a wonderful story,” whereas the 2024 U.S. elections may additionally play a job.
“That uncertainty should help Bitcoin in the fact that the U.S., Europe and Japan still can’t come close to being fiscally responsible is why people got invested in Bitcoin in the first place,” Novogratz stated.
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