Nouriel Roubini, a very fierce and vocal opponent of cryptocurrencies is continuing his debate with BitMex’s Chief Executive Officer (CEO) Arthur Hayes.
In a report he alleged that Hayes’ exchange “may be openly involved in systematic illegality.” Roubini who is a professor of economics at the Stern School of Business said BitMEX lets traders take on too much risk, allowing them to leverage bets to 100 times the amount of funds they put down, as per a Bloomberg report.
Last November Roubini had said, “I could gloat about Bitcoin collapsing 10% in a day to $5700. But that is still some way to ZERO where Bitcoin belongs. Actually since Bitcoin is The Mother of All Toxic Pollutions & Environmental Disasters its true fair value is highly NEGATIVE with the right externality tax.”
In a post he said, “Cryptocurrencies are routinely launched and traded outside the domain of official financial oversight, where avoidance of compliance costs is advertised as a source of efficiency. The result is that crypto land has become an unregulated casino, where unchecked criminality runs riot.”
He further added, “Consider BitMEX, an unregulated trillion-dollar exchange of crypto derivatives that is domiciled in the Seychelles but active globally. Its CEO, Arthur Hayes, boasted openly that the BitMEX business model involves peddling to “degenerate gamblers” (meaning clueless retail investors) crypto derivatives with 100-to-one leverage.”
He alleged that BitMex insiders apparently told him that this exchange was also reportedly used daily for money laundering on a massive scale by terrorists and other criminals from Russia, Iran, and elsewhere.
This is not the first time that, Roubini has butted heads against BitMex. Last week, news portal CoinDesk reported that the exchange finally released the “tapes” from the July 3 debate between Hayes and Roubini.
The debate was about security and scalability where Hayes called for more financial privacy while Roubini saw the whole system – the “experiment called bitcoin” – as corrupt and ridiculous.
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