Is Binance a ticking time bomb?

The fall of crypto exchange FTX has given a lot of grist to the mill of crypto detractors. One of them is the American economist Nouriel Roubini. In recent years he has been very critical of the industry, pointing out that it is mostly Ponzi schemes. Recently, he had some harsh remarks about the Abu Dhabi authorities that allowed Binance to operate as a custody provider in the region.

Spotlight on Binance and CZ!

During the recently concluded finance week in Abu Dhabi, American economist Nouriel Roubini once again criticized cryptocurrencies. This time, the criticism is specifically about the Binance exchange and its CEO, Changpeng Zhao (CZ). Roubini has wont its disagreement with the authorization granted by the Emirates government to Binance to operate in the country. For him, the local financial services regulatory authority should have thought more carefully about this issue. This is because Binance is being banned in some countries and is questionable in some other jurisdictions.

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

Roubini’s comments broadcast on social media

Roubini contextualizes

The economist’s statements were commented on a lot in social networks, creating a controversy that blew up 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 crypto. For all this he has he 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 crisis of 2008. He is strongly against crypto and believes that CBDC will dethrone them.

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Avatar Luc Jose Adjinacou
Luc Jose Adjinacou

No less than it dampened my enthusiasm, an unsuccessful investment in a cryptocurrency in 2017 only increased my enthusiasm. Therefore I decided to study and understand the blockchain and its many uses and transmit with my pen information about this ecosystem.

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