Binance’s $4.3 billion Galaxy Digital’s Mike Novogratz said the settlement with the U.S. Department of Justice (DOJ) was hailed as a positive move for the company and the broader cryptocurrency industry.
in a interview Speaking to Bloomberg on November 29, the cryptocurrency investment firm’s CEO said he believed the high-profile settlement should reassure worried investors and users of global exchanges:
“I think they’ve reduced the risk in a lot of ways. People are 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, as regulatory oversight continues to take center stage in the United States.
Binance didn’t steal money
The Galaxy Digital chief said a sound approach based on investing and building relationships with companies “that take their jobs seriously” remained key, while stressing that mainstream finance had also found itself on the wrong side of regulators in recent years.
“If you look at the list of TradFi banks that have been sanctioned or fined by different regulators over the past 24 months, it’s a staggering list. So you’re not looking for zero errors, otherwise there’s no one to deal with,” Novogratz said.
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He added that concerns that Binance could be shut down or that the exchange “stole people’s money” in a situation similar to FTX are simply not true:
“This comes down to some pretty serious breaches of KYC (know your customer) protocols, which they have worked hard to rectify, paid the fine and are 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 rise significantly’
Novogratz also weighed in on continued expectations for Bitcoin (BTC) exchange-traded fund (ETF) approved in the United States, with the 2024 mining reward halving coming soon.
“There’s a lot of good things happening with Bitcoin. We’re going to buy an ETF. There’s a lot of anticipation and some of it is already built into the price,” Novogratz said.
Related: Why Binance’s US Plea Agreement Could Have a Positive Impact on Cryptocurrency Adoption
The investor added that if the ETF is approved, many investment and asset management firms, including the likes of BlackRock, Fidelity, ARK Invest and Galaxy Digital, will mobilize their sales staff to convince people to adopt Bitcoin:
“Prices are going to rise significantly, especially with the possibility of the Fed cutting interest rates. Can we reach all-time highs by this time next year? Of course we can.”
Novogratz also noted that the Bitcoin halving sets the stage for “a great story,” and that the 2024 U.S. election could also play a role.
Novogratz said: “This uncertainty should help Bitcoin because the United States, Europe and Japan are still unable to be financially responsible, which is the reason why people invest in Bitcoin in the first place.”
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