Ethereum co-founder Vitalik Buterin is again in the headlines for his controversial take on crypto regulation. He shared his rather contentious opinion about the regulatory debate surrounding crypto, saying, “I don’t think we should be enthusiastically pursuing large institutional capital at full speed.”
He further said, “I’m actually kinda happy a lot of the ETFs are getting delayed.” Backing his argument, he added that the ecosystem needs time to mature and be in tune with the regulatory policies before it gets more attention.
In a long twitter thread, Buterin included points on what should and should not be included in the rules.
He strongly believes that regulations that allow crypto space free to act internally but make it harder for crypto projects to hit mainstream are much less bad than regulations that intrude on how crypto works internally.
Simply put, in his opinion, regulations that intrude into the inner workings of the crypto ecosystem are worse than regulations that restrict crypto ventures to be widely recognized.
Moreover, he also shed light on the use of KYC on DeFi frontends. According to him, KYC on DeFi frontends would annoy users but do nothing against hackers. Hackers can still write custom code to interact with contracts already.
Considering this, Buterin gave three suggestions given below:
He then concluded by recommending zero-knowledge proofs to meet regulatory requirements while preserving users’ privacy.
“I would love to see rules written in such a way that requirements can be satisfied by zero-knowledge proofs as much as possible” he said.
Well, Vitalik has been seen making controversial statements now and then. Crypto Twitter keeps an eye out for what he has to say whenever some debatable issue surfaces among the crypto community.
Just a couple of days ago, he argued that crypto beats gold and is a “better bet” when an American cartoonist expressed his opinion favoring gold over crypto.
