AI should be regulated, not crypto: Galaxy Digital CEO

Mike Novogratz is optimistic that blockchain-based applications can play a crucial role in addressing the challenges posed by artificial intelligence

By Shashank Bhardwaj

Published: Mar 31, 2023 10:41:31 AM IST

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Mike Novogratz, CEO of Galaxy Digital. Image: John Lamparski / Getty Images via AFP

Mike Novogratz, the CEO of Galaxy Digital, a company that invests in digital assets, expressed surprise at the level of regulatory scrutiny that crypto assets are receiving.

Novogratz thinks that the focus should be on artificial intelligence (AI), a technology that he believes will lead to a crisis of "deep fake" identities.

During the fourth-quarter conference call on March 28, Novogratz expressed his opinion that the US government is misguided in its focus on regulating crypto assets instead of prioritising regulation for artificial intelligence.

Novogratz believes that the government's priorities are "completely upside-down," as AI poses a significant threat of creating "deep fake" identities, yet there is little discussion about regulating it.

Novogratz's concerns about the lack of regulatory attention given to artificial intelligence are rooted in his fear of an impending "deep fake" identity crisis. He believes that the best use case for crypto is in providing identity verification for AI. However, in a world where anyone can create a fake identity, he wonders how identity can be verified.

Novogratz is optimistic that blockchain-based applications can play a crucial role in addressing the challenges posed by AI. He also thinks it is unwise to dismiss the crypto and blockchain industry based on the actions of a few individuals.

Last week, the Technology Advisory committee held discussions with the US Commodity Futures Trading Commission about the impacts of artificial intelligence.

Novogratz commented on the current state of the crypto market and stated that the industry has made a remarkable recovery in 2023 due to two main factors. The first factor is "seller exhaustion" caused by panic selling and nervousness amongst investors, resulting in all the necessary selling being completed. The second factor is the reopening of China, which has helped the market regain its footing.

According to Novogratz, the Chinese government's strict "zero-COVID" approach resulted in a reduction in crypto activity in the country. However, he has recently observed an increase in crypto activity from China. This is due to the government easing regulations on tech companies, which has led to an increase in crypto-related activity in Asia.

Novogratz is optimistic about the future of the crypto market and believes that it will continue to grow throughout 2023.

The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash