Outspoken economist Nouriel Roubini described crypto and some of its main players as “a whole broken ecosystem.”
In a panel hosted by CNBC’s Dan Murphy at the Abu Dhabi Finance Week on Wednesday, a New York University professor said there are “seven crypto Cs”: “Hidden, corrupt, criminals, crooks, fraudsters, carnival barkers,” and finally. , Binance Chief Executive Officer Changpeng Zhao, known as CZ, who spoke on a previous panel at the same conference.
related investment news
“The lesson of the last few weeks is that these people need to get out of here,” Roubini added. CNBC has contacted Binance and Changpeng Zhao for comment.
A new turbulence in the crypto market has appeared collapse of one of the largest crypto exchanges in the worldFTX, with a revelation of risky and unsustainable debt and debt by companies and related investment funds.
Price from bitcoin has fallen below $17,000 for the first time since 2020, and some fear contagion could spread to toppling other major players, such as Crypto.com. The CEO of the company has deny this.
Binance has repeatedly focused on the story of FTX, with the company initially suggesting it would buy its previously failed rival pull out of the deal.
“I do not believe that CZ and Binance have a license to operate in the UAE. They are banned in Englandthey investigated by the US Department of Justice for money laundering,” said Roubini, nicknamed “Dr. Doom” for previous pessimistic predictions, including predictions of a property market crash in 2007-2008.
In September, Reuters reported that US federal prosecutors have in 2020 asked Binance for internal records on anti-money laundering checks, along with communications involving CZ.
Countries have taken different stances on the oversight of crypto companies as the industry has grown in size in recent years.
After stating in a July 2021 blog that they want to increase engagement with regulatory authorities, CZ has led Binance to agreements in Dubai and Abu Dhabiand in May won regulatory approval in France, its first major European jurisdiction. On Wednesday, it announced it had reached a further agreement in Abu Dhabi to provide custody services to professional clients.
However, it is banned in the UKhas been made for limit activities in Singaporeand operate through a spin-off company that has been researched, Binance USin the US
other countries, such as Indiahas sought to ban crypto trading altogether.
Before Roubini’s comments in Abu Dhabi, CZ said in a separate panel, the crypto industry needs associations that create best practices and speak to regulators around the world.
He also said he saw “very significant interest” in support of his proposal to set up a recovery fund to support crypto projects facing a liquidity crisis.
Discussing his biggest mistake, he said: “Originally I would have said we could have moved faster but because of what happened last week that might not have been a good idea. Taking it step by step is more important.”
In response to the question of whether crypto needs saving, he said: “Crypto has really shown extreme resilience… I think the industry will do well.”
— CNBC’s Hannah Ward-Glenton contributed to this report.
Correction: This story has been updated to correct the quote from Nouriel Roubini.