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Financial regulators around the world have been heavily focused on cryptocurrencies for years. In some nations, such as Japan, Korea, Singapore, and alike, the regulators are trying to enable the crypto industry by providing strict but altogether fair laws. In other regions, such as the US, regulators seem more focused on punishing projects that have done something wrong rather than coming up with appropriate crypto laws.
However, the fact remains that regulators are strongly focused on blockchain and crypto while ignoring most other emerging technologies. At least, this is what Galaxy Digital’s CEO, Mike Novogratz, seems to believe.
Regulators need to start paying attention to AI
Novogratz recently told investors that he is shocked by the fact that regulatory attention is so focused on the crypto industry while they apparently completely ignore Artificial Intelligence (AI). According to Novogratz, this technology — despite its potential — can be dangerous and might trigger a “deep fake” identity crisis.
During the company’s Q4 conference call that took place this Tuesday, March 28th, Novogratz said that the US government has taken things completely upside-down by choosing to focus so strongly on crypto while ignoring AI.
When I think about AI, it shocks me that we’re talking so much about crypto regulation and nothing about AI regulation. I mean, I think the government’s got it completely upside-down.
He expects that AI will be used for mimicking identities online, and he actually sees the crypto industry as a good way for people to protect themselves from this. Thanks to the immutability of blockchain and crypto, digital currencies could be a good way to establish identity around AI.
AI portrait Van Novo pic.twitter.com/ESnenSDmdb
— Mike Novogratz (@novogratz) July 16, 2022
He remains convinced that blockchain applications will play a huge role in combating the issues that AI will bring moving forward.
Crypto industry is recovering
With that said, the claim that the governments are completely ignoring AI is somewhat misleading, given that the US CFTC recently engaged in discussions involving AI and its potential impacts with the Technology Advisory committee. Novogratz still has a point, as these discussions are only just starting, while the regulators are still prioritizing cryptocurrencies. However, some seem to realize that AI could be a serious problem if it gets out of hand.
Commenting on the current state of the crypto industry, Novogratz said “seller exhaustion” and the reopening of China have had positive impacts on the crypto industry, which has started to recover. He also noted that more and more crypto activity is coming out of China, as the country “took the regulatory boot off the necks of their tech companies,” which also includes cryptocurrencies.
#Bitcoin is a report card on monetary policy and financial stability. In other words, it was built for these times.
On a risk-adjusted basis, BTC is the best-performing asset of the year, outpacing growth stocks, banks, and major stock benchmarks. pic.twitter.com/RZ0xZcgsLT— Mike Novogratz (@novogratz) March 23, 2023
As for the future, he feels confident that the digital asset market will continue to follow an upwards trajectory for the rest of 2023.
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