Is Binance a walking time bomb?

The collapse of the crypto exchange FTX has given a lot of grist to the mill of crypto detractors. American economist Nouriel Roubini is one of them. In recent years, he has been very critical of the industry, indicating that for the most part it is about Ponzi schemes. Recently, he had some harsh remarks about Abu Dhabi authorities allowing Binance to operate as a custodial provider in the region.

Spotlight on Binance and CZ!

During the just-concluded Abu Dhabi Finance Week, US economist Nouriel Roubini once again criticized cryptos. This time, the criticisms have particularly concerned the Binance exchange and its boss, Changpeng Zhao (CZ). Roubini has Express its disagreement with the authorization given by the Emirati government to Binance to operate in the country. For him, the local financial services regulatory authority should have thought more carefully about the issue. This is because Binance is being banned in some countries and in the crosshairs of justice in some other jurisdictions.

“I can’t believe Binance has a license to operate in the UAE. Unfortunately, it’s a totally corrupt ecosystem. What happened recently is the lesson that these people should be out of here (…) Binance is being banned in the UK. CZ is under investigation by the United States Department of Justice for money laundering. It’s 8 billion dollars coming from Iran, but he is here, and has a residence in this country (…) We should deport him. I’m sorry to say, but it’s a walking time bomb”, he said. And to continue: “CZ is even more sleazy than Sam Bankman-Fried”.

Roubini’s comments relayed on social networks

Roubini contextualizes

The economist’s remarks were widely commented on on social networks, creating a controversy that swelled a lot. Many within the crypto community felt these were personal attacks. For others, the economist has pushed the plug too far in his hatred of cryptos. To all this he has answered on Twitter that it is not.

“I wasn’t attacking CZ. I was telling the UAE authorities that Binance should not have a license to operate in the country. This, while they are banned in the UK and under investigation by the US Department of Justice”he wrote.

Nouriel Roubini became famous for predicting the 2008 crisis. He fiercely opposes cryptos and believes that CBDCs will dethrone them.

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Luc Jose Adjinacou avatar
Luc Jose Adjinacou

Far from having dampened my enthusiasm, an unsuccessful investment in a cryptocurrency in 2017 only increased my enthusiasm. I therefore resolved to study and understand the blockchain and its many uses and to relay with my pen information relating to this ecosystem.

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