Binance’s $4.3 billion According to Mike Novogratz of Galaxy Digital, the settlement with the US Department of Justice (DOJ) is welcomed as a positive move for the company and the crypto industry as a whole.
in interview In an interview with Bloomberg on November 29, the CEO of a cryptocurrency investment company said he believes this high-profile settlement should reassure concerned investors and users of global exchanges. expressed.
“I think they are risk-averse in many ways. People were worried about trading with Binance. Now they have very little to worry about.”
Novogratz also addressed considerations for large investment firms that work with exchanges and traditional finance (TradFi) players as regulatory oversight continues to be a focus in the United States.
Binance didn’t steal your money
Galaxy Digital’s CEO said a “rational” approach, underpinned by investments and relationships with companies that “take their jobs seriously” remains important, at the same time that mainstream financial institutions have also faced negative consequences from regulators in recent years. He emphasized that he was standing by his side.
“If you look at the list of TradFi banks that have been sanctioned or fined by various regulators in the last 24 months, it’s a shocking list. So we’re not asking for zero mistakes. No. Otherwise, there would be no one to deal with it,” Novogratz said.
Related: FTX collapse, Binance US settlement provides strong basis for MiCA regulation
He added that concerns about the possibility of Binance being shut down or that the exchange “stole people’s money” in a situation similar to FTX were simply not applicable.
“The cause was a fairly serious violation of KYC protocols, and they have worked to rectify it, paid the fine, and are moving on to the next step,” Galaxy Digital’s CEO said.
“I think this is a net positive for their company. I think it’s a net positive for our industry.”
Bitcoin price “will rise significantly”
Novogratz also factored in continued expectations for Bitcoin exchange-traded funds (ETFs) to be approved in the U.S. and the looming halving of mining rewards in 2024.
“There are a lot of good things happening with Bitcoin. We’re going to get an ETF. There’s a lot of expectation and some of that is built into the price,” Novogratz said.
Related: Why Binance’s U.S. plea deal will help the spread of cryptocurrencies
The investor added that if the ETF is approved, many investment and asset management companies such as BlackRock, Fidelity, Ark, and Galaxy Digital will mobilize their sales forces to persuade people to adopt Bitcoin. Ta.
“Prices are going to rise significantly, especially when the Fed is likely to cut interest rates. Is there a chance we’ll reach all-time highs by this time next year? Of course, that’s a possibility.”
Novogratz also noted that while Bitcoin’s halving sets the stage for a “great story,” the 2024 US election could also have an impact.
“That uncertainty should help Bitcoin because the fact that the US, Europe and Japan are still not fiscally responsible is why people invested in Bitcoin in the first place,” Novogratz said. Ta.
Magazine: The truth behind Cuba’s Bitcoin revolution: Field report