Binance settlement 'net positive’ for cryptocurrency industry - Mike Novogratz

Binance’s $4.3 cardinal settlement with the United States Department of Justice (DOJ) is being hailed arsenic a affirmative determination for the institution and the wider cryptocurrency industry, according to Galaxy Digital’s Mike Novogratz.

In an interview with Bloomberg connected Nov. 29, the CEO of the cryptocurrency concern steadfast expressed his content that the high-profile colony should assuage acrophobic investors and users of the planetary exchange:

“I deliberation they're de-risked successful tons of ways. People were disquieted astir dealing with Binance. There's a batch little to interest astir now.”

Novogratz besides weighed successful connected the considerations for large concern firms dealing with exchanges arsenic good arsenic accepted concern (TradFi) players arsenic regulatory oversight continues to instrumentality halfway signifier successful the U.S.

Binance didn’t bargain money

The Galaxy Digital CEO said that a “reasonable” attack underpinned by investments and relationships with companies that “take their jobs seriously” remains cardinal portion stressing that mainstream concern has besides recovered itself connected the incorrect broadside of regulators successful caller years.

“If you went done the database of TradFi banks who person been sanctioned oregon fined by antithetic regulators successful the past 24 months, it's a shocking list. So you're not looking for zero mistakes, different there'd beryllium nary 1 to woody with,” Novogratz said.

Related: FTX collapse, Binance’s US colony supply beardown lawsuit for MiCA regulations

He added that concerns implicit Binance perchance being unopen down oregon that the speech had “stolen people’s money” successful a concern similar to FTX simply was not the case:

“It came down to immoderate beauteous superior violations of KYC protocols and they've worked to close them, they paid their good and they're moving on,” the Galaxy Digital CEO said.

"I deliberation it's a nett affirmative for their company. I deliberation it's a nett affirmative for our industry."

Bitcoin terms “will beryllium importantly higher”

Novogratz besides weighed successful continued anticipation of a Bitcoin exchange-traded fund (ETF) being approved successful the U.S. arsenic good arsenic the mining reward halving looming successful 2024.

“There's a clump of bully things happening for Bitcoin. We are going to get an ETF. There's a batch of anticipation and immoderate of that's built into the price,” Novogratz said.

Related: Why Binance’s US plea woody could beryllium affirmative for crypto adoption

The capitalist added that if and erstwhile an ETF is approved, a fig of concern and plus managers, including the likes of BlackRock, Fidelity, Ark and Galaxy Digital volition mobilise their income forces to person radical to follow Bitcoin:

"The terms is going to beryllium importantly higher, particularly astatine a clip erstwhile the Fed is astir apt cutting rates. Could we spell to aged highs by this clip adjacent year? Of people we could."

Novogratz besides noted that the Bitcoin halving sets things up for “a fantastic story,” portion the 2024 U.S. elections could besides play a role.

“That uncertainty should assistance Bitcoin successful the information that the U.S., Europe and Japan inactive can’t travel adjacent to being fiscally liable is wherefore radical got invested successful Bitcoin successful the archetypal place,” Novogratz said.

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