Cryptocurrencies, initial coin offerings and blockchain applications have consistently divided opinion since the spectacular rise and fall of the likes of bitcoin in recent months.
However, businesses and individuals should refrain from trusting negative claims and warnings surrounding cryptocurrency, according to the chairman of Baker McKenzie Habib Al Mulla.
Speaking at the Arabian Business Startup Academy, Dr Habib Al Mulla said such claims stem from regulators and governments’ struggles in controlling the digital currencies.
“You will hear many warnings that cryptocurrencies are risky, that they are not regulated, that they are being used in illegal activities, drug trafficking, illegal arms deals, and many illegitimate activities in the dark web. I would simply like to say, do not listen to these [claims]… They stem from the fact that regulators and governments are struggling to have control over cryptocurrencies and activities based on them, at least for now,” he said.
Concerns surrounding cryptocurrencies continue to puzzle top legal and financial experts in areas such as securities and commodities law, capital gain, taxes, international transactions, anti-money laundering and trading and investment practices, Dr Al Mulla said, with some experts claiming that many have already been scammed out of millions.
In this edition of Inside AB, Jeremy Lawrence and Lubna Hamdan look at why, despite the claims of these experts, Dr Al Mulla believes that cryptocurrencies will likely ‘dominate’ the business environment.
(Source: Arabianbusiness.com YouTube channel)