Ethereum Vitalik Buterin calls for more crypto regulation
Ethereum founder Vitalik Buterin has shared his views on the raging conversation surrounding crypto regulations in a recent Twitter thread.
Vitalik Buterin discussed how regulations would affect crypto. Ethereum’s founder showed support for any law that makes it easier for the industry to reach mainstream adoption. But he categorized those who disrupt how blockchain technology works as bad.
This statement continues his previous views, where Buterin emphasized the importance of adoption and why it is necessary to remove all barriers that could prevent the crypto market from flourishing.
Ethereum founder Vitalik Buterin on DeFi KYC
Buterin also touched on the idea of KYC for DeFi frontends as proposed by FTX founder Sam Bankman-Fried.
Ethereum’s founder said that such an initiative is pointless because it would only annoy users. Meanwhile, cryptohackers will still be able to write code that interacts directly with smart contracts.
In Vitalik Buterin’s view, all regulations focus on achieving two goals, consumer protection and making it difficult for criminals and bad actors to move large amounts of money around.
As for bad actors moving money around, Ethereum founder Vitalik Buterin said these problems are “concentrated not in DeFi, but in large-scale crypto payments in general.”
Still, he recommended regulations for the DeFi fronts. These included a limit on leverage, requirements for transparency in audits and security checks for contract codes, and limited use of knowledge-based tests rather than net worth.
Buterin so:
“I would like to see rules written in such a way that requirements can be satisfied with zero-knowledge proof as much as possible. ZKPs offer many new opportunities to satisfy reg-policy goals and preserve privacy at the same time, and we should take advantage of this.”
The crypto market must mature
Buterin explained that the crypto industry should not go after institutional capital as the ecosystem needs to mature first. Still, he’s somehow happy that the SEC continues to reject applications for spot ETFs.
The discussion about regulation of crypto has gained momentum recently. Especially after FTX founder Sam Bankman-Fried published a policy statement explaining how he thinks crypto should be regulated.
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