Policy Is the Biggest Predictor Of Outcomes: Kevin O'Leary The Shark Tank-fame investor believes a stable policy regime gives the confidence to invest
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India's cryptocurrency posterboy Sandeep Nailwal, the founder of Polygon, shifted his base to Dubai in the United Arab Emirates (UAE) around 2020. Various other Indian cryptocurrency brains such as Nischal Shetty and Siddharth Menon of WazirX moved to the same destination. A few others opted for Singapore.
These immigrations were, in a way, forced by the Indian government's tough stance on the blockchain-based decentralized currency. While making it clear that the space is not under regulation, the government imposed a 30 per cent crypto tax and 1 per cent tax deducted at source on all virtual digital assets starting April 1, 2022. The announcement was made by India's finance minister Nirmala Sitharaman in her Budget 2022 speech.
However, these individuals are not the only cryptocurrency enthusiasts who are looking for policy-friendly geographies. Canadian businessman Kevin O'Leary, a vocal cryptocurrency investor and advocate, is looking beyond the US and Europe to invest in this space.
During his visit to Abu Dhabi in late November this year during the Abu Dhabi Finance Week, the Shark Tank-fame investor noted that the biggest predictor of outcomes is policy and investors expect a stable policy regime from regulators. According to him, individuals don't create jobs, policies create jobs. "It gives you confidence to invest."
O'Leary is the ambassador for Access Abu Dhabi programme under the Abu Dhabi Investment Office.
He has gone on record to say that 20 per cent of his investment portfolio is in blockchain companies and cryptocurrencies. According to some estimates, that comes out to around $80 million.
The UAE, and particularly the Emirates of Abu Dhabi, is becoming the hotbed for digital currencies. According to a recent report by Crypto Oasis, a Middle East-focused blockchain ecosystem, the UAE crypto market is expected to multiply by 10 times.
Even the non-fungible token (NFT)—another application of the blockchain technology—industry in the UAE is expected to swell by 45.5 per cent annually to reach $982.1 million by the end of 2022, according to a report by ResearchAndMArkets.com, a market insights and analysis firm. The report also noted that the NFT Spend Value in the UAE is set to increase from $982.1 million in 2022 to reach $4746.3 million by 2028.
According to O'Leary, productivity potential of blockchain-based financial products and services is quite compelling and it is up to regulators around the world to decide at what pace they want to adopt it and under what policies. "It is not going away."
