- Ethereum founder Vitalik Buterin is “kinda happy” with the ETF delay.
- Buterin speaks on DeFi KYC, saying it will “do nothing against hackers.”
- Other crypto leaders and investors agree with Buterin’s views on regulations that could change the course of the industry.
The Ethereum co-founder Vitalik Buterin shared his thoughts regarding crypto regulations and how they would impact the inner workings of the crypto ecosystem. He does not think the crypto industry should be pursuing significant institutional capital at full speed, saying that the space needs “time to mature” before they get even more attention.
In an October 30 Twitter thread, Buterin also said,” I’m kinda happy a lot of ETFs are getting delayed.”
The co-founder believes that, at this time, it is of great value to have regulations that enable inner freedom to crypto projects, even if it hampers mainstream adoption. He stated,
“Especially at this time, a regulation that leaves the crypto space free to act internally but makes it harder for crypto projects to reach the mainstream is much less bad than regulations that intrude on how crypto works internally.”
Vitalik Buterin Weighs In On Crypto Regulations
Buterin’s views come days after Sam Bankman-Fried (SBF), ex-CEO of cryptocurrency exchange FTX, published a policy statement about how he thinks the crypto ecosystem should be regulated. SBF shared his thoughts on crypto regulations in a thread of tweets where he clearly and boldly stated that” none of this is legal, regulatory, or investments advice.”
Vitalik also made his assumptions concerning the Know Your Customer (KYC) for DeFi frontends, as proposed by SBF. The Russian-Canadian computer programmer highlighted that the need to KYC on crypto would annoy users but do nothing to hackers. The entrepreneur tweeted:
“The ‘KYC on Defi frontends’ idea does not seem very pointful to me: it would annoy users but do nothing against hackers. Hackers write custom code to interact with contracts already. Exchanges are much more sensible places to do the KYC, and that’s happening already.”
Buterin categorized regulatory policies into two classes: consumer protection and making it harder for baddies to move around large amounts of money. The crypto guru said that when bad actors move money around, the issues are” concentrated not in DeFi, but in large-scale crypto payments.”
In Buterin’s regard, regulations around DeFi could be more helpful such as imposing limits on leverage, requiring transparency on audits, FV, and contract code, and using “knowledge-based tests instead of plutocratic net-worth minimum rules.”
He further added that he would love to see rules crafted so that zero-knowledge proofs can satisfy requirements (ZPKs). The ZPKs offer many opportunities to meet regulation policy goals and preserve privacy, which is advantageous.
The discussion over crypto regulations has grabbed many people’s attention in various cryptocurrency companies. SBF responded to a crypto fan on Twitter regarding Vitalik’s views saying that he thinks policymakers and regulators would find it interesting to hear from the Ethereum co-founder and he is “very” different from the average person in DC.
The crypto investor Ryan Sean Adam did not lag in making remarks on Buterin’s statements by saying that he agrees with him and is welcoming Vitalik to share his thoughts in Bankless Headquarters, a DAO and crypto media project.
Vitalik’s comments were also given a thumbs-up emoji from Changpeng Zhao, the leading cryptocurrency exchange Binance founder and Chief Executive. Many of these cryptocurrency companies and investors agree with Vitalik’s remarks on crypto regulations, which portrays that most need crypto independence in the crypto industry.