Vitalik Buterin, one of the founders of the leading altcoin Ethereum, talked about the regulations related to the crypto money markets, which have been on the agenda and discussed recently. Buterin also expressed some ideas about the internal workings in the crypto space.
Vitalik Buterin sees no harm in regulating the crypto industry by governments in order for the crypto industry to mature and projects to sit on more solid foundations.
“Basically, there’s two main classes of regulatory policy goals: (i) consumer protection, (ii) making it harder for baddies to move large amounts of money around. The issues around (ii) are concentrated not in defi, but in large- scale crypto payments in general.”
Buterin believes that the main reason governments seek regulation is money laundering via crypto by malicious big money holders. The ETH inventor thinks that this problem can be solved by regulating the DeFi sector, with measures such as limiting the amount of leverage on exchanges.
The inventor of Ethereum shared a series of tweets about the internal products of the industry after the regulations on the agenda. Vitalik takes another look at the recent delay and rejection of crypto ETFs from regulators. A little more maturation of the crypto industry is the main requirement Buterin seeks for ETF listings. According to Buterin, the rapid listing of ETFs will lead to more industry attention and pressure.
Buterin lastly touched upon authentication systems (KYC) in the DeFi industry. Hackers avoid authentication by writing special codes, especially on DeFi platforms. According to the founder of ETH, this situation should be dealt with immediately.