Vitalik Buterin believes that any regulation must meet two objectives: protecting the user and preventing the theft of large amounts of money.
Ethereum founder Vitalik Buterin often shares his opinions and thoughts with the community via Twitter. This time, he has used the social network to share his views on the regulation of the crypto sector, which has generated intense debate.
Buterin has shown his support for regulators, especially to all those who propose laws that facilitate the development of technology and pave the way for widespread adoption.
At the same time, he warned about the problems that can be generated by legislators who only want to "interfere", since they are the ones who prevent blockchain technology from advancing and evolving.
Their vision is for regulation that supports development and removes all barriers that could prevent cryptocurrencies from flourishing.
Vitalik Buterin and the regulation of the DeFi space
While he has been in favor of regulations, Vitalik has also been against the views of Sam Bankman-Fried, CEO of FTX. Recently, Bankman-Fried proposed a Know Your Client (KYC) mechanism for DeFi interfaces.
For Buterin, This idea is nonsensical and would only serve to annoy users.At the same time, hackers could continue to write and publish malicious code directly in smart contracts.
Ethereum founder believes all regulations must meet two goals: protect the consumer and prevent criminals steal large amounts of money.
On hacks and thefts, Buterin believes that it is a problem affecting large-scale crypto payments in general, and not something that is “focused on the DeFi space.”
However, he has shared some regulations for the DeFi front-end , the limits on leverage, greater transparency in audits, security controls for smart contract codes and limiting use through proof of knowledge rather than net worth.
For this last point, the founder of Ethereum proposes the Using ZKP, as they offer many facilities to preserve privacy.
The crypto space still has a long way to go
Vitalik Buterin closes his review of the regulation of the crypto space, explaining that The sector still needs to mature. In this regard, he also stresses that, at this point, he must stop pursuing the institutional money and focus on growth and evolution.
On this point, Buterin is happy that the SEC does not approve applications for ETFs linked to Ethereum and other cryptocurrencies.
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