Cryptocurrency and some of its big actors, according to outspoken economist Nouriel Roubini, are part of an “environment that is absolutely corrupt.”
The professor from New York University claimed there were seven Cs of crypto: Concealed, corrupt, crooks, criminals, con men, carnival barkers, and lastly, Binance Chief Executive Changpeng Zhao, also known as CZ, who spoke on a previous panel at the same conference.
According to the lesson of the past few weeks, these people must leave the country, according to Roubini.
Due to recent market volatility, one of the largest cryptocurrency exchanges in the world, FTX, collapsed when it was discovered that the company and associated investment funds had engaged in very hazardous and unsustainable borrowing and lending.
For the first time since 2020, the price of bitcoin has fallen below $17,000, and some worry that the trend may spread and bring down other significant companies like Crypto.com. The company’s CEO has refuted this.
Binance has repeatedly made FTX the centre of attention, with the company initially expressing interest in purchasing its faltering rival before abandoning the plan.
That CZ and Binance have a permit to conduct business in the UAE baffles him. He is prohibited from entering the United Kingdom, the U.S. Justice Department is investigating him for money laundering. Roubini, nicknamed as “Dr. Doom” for his prior doomsday prophecies, which included a forecast of the collapse of the real estate market in 2007-2008
In his subsequent criticism of the CEO of Binance, Roubini expressed his confusion over the fact that he was here on this stage and has domicile in this nation, alluding to the United Arab Emirates. The authorities “should be seriously considering, he said. It’s a ticking time bomb.
The Abu Dhabi Global Market, Abu Dhabi’s financial services regulatory body, granted Binance a Financial Services Permission on the same day. The cryptocurrency exchange was given the go-ahead earlier this year by Dubai, the commercial hub of the UAE, and was upgraded from a provisional licence to a Minimal Viable Product licence in September, enabling it to provide a range of virtual asset services to investors.
In March, when it announced it would establish a regional headquarters in the Gulf emirate, FTX received a partial licence to begin operations there as well. Even as other nations and governments raise concerns about the hazards associated with the industry, the UAE has been putting in place a number of laws and frameworks to establish itself as a crypto hub.
According to Reuters, in September, Binance was ordered to provide internal information about its anti-money laundering procedures and conversations involving CZ after US federal authorities requested them in 2020.
As the crypto business has grown significantly in recent years, many nations have adopted different stances regarding the regulation of crypto companies.
CZ has guided Binance to clearance in Dubai and Abu Dhabi and, in May, received regulatory approval in France, its first significant European jurisdiction, after announcing in a July 2021 blog that he wished to improve contact with regulatory agencies. It said on Wednesday that it has received additional clearance in Abu Dhabi to offer custody services to business clients.
It was created to restrict its activities in Singapore, although it is prohibited in the United Kingdom. In contrast, Binance U.S. was established and is managed by a different team in order to adhere to domestic regulations.
Other nations, like India, have pushed for a complete ban on cryptocurrency trade.
Prior to Roubini’s remarks in Abu Dhabi, CZ stated on a different panel that the crypto business required an association to set best standards and communicate with regulators worldwide.
He added that there had been “quite strong interest” in his suggestion to create a recovery fund to aid cryptocurrency projects experiencing a liquidity crisis.
When talking about his biggest error, he said: Initially, he would have suggested that they go a little bit more quickly, but considering what happened the previous week, that might not have been a fantastic idea. In actuality, taking things slowly is more crucial.
When asked if cryptocurrency needed to be saved, he replied: Crypto has actually demonstrated remarkable endurance. The industry will be fine, in his opinion.
