I’m glad so many ETFs are late: Vitalik Buterin

Ethereum co-founder Vitalik Buterin recently weighed in on crypto regulation, noting that he is somewhat happy that regulators continue to refuse applications for crypto-trading funds (ETFs).

In a lengthy controversial Twitter thread on October 30, Buterin emphasized that the crypto industry is still in the early stages of attracting institutional adoption due to the need for a comprehensive regulatory framework to control the market.

Buterin happy about disapproved crypto-traded funds

The developer believes that the crypto space needs time to achieve some growth with a complete regulatory model that can effectively weed out bad actors from exploiting the ecosystem before ETFs are adopted.

Remember, the US Securities and Exchange Commission (SEC) has rejected several Bitcoin Spot ETF applications in the past, including one archived by the leading global asset manager, Grayscale Investments, earlier this year.

Buterin’s thoughts on DeFi regulations

Buterin also shared his thoughts on regulations for the decentralized finance (DeFi) sector, noting that the idea of ​​implementing Know Your Customer (KYC) rules on DeFi projects would not prevent hackers from exploiting such protocols.

He further indicated that the rules will only apply to the front end of the platforms, while hackers write codes to interact with smart contracts through the back end.

The Ethereum founders also mentioned that regulations on the interface could work if they focus on leverage limits, which require transparency around audits and usage guided by knowledge-based testing rather than imposing minimum net worth rules.

Two main objectives of regulatory policy

Buterin highlighted the two main goals of regulatory policy: protecting the consumer and making it impossible for malicious actors to move money throughout the ecosystem.

He also noted that the issues surrounding the second goal are not centered in the DeFi ecosystem but in fully crypto payment systems, which include centralized exchanges such as Binance, Coinbase, and FTX.

Buterin isn’t the only major player in the industry to comment on crypto regulations recently. Earlier this month, Sam Bankman-Fried, CEO of leading cryptocurrency exchange FTX, said: subscriber His organizational vision for the industry.

The billionaire CEO noted that cryptocurrencies need clear regulatory oversight to protect consumers from theft to ensure an open and free economy where users can transfer funds without restrictions.

The post I Am Kinda Happy Lots of ETFs Delayed: Vitalik Buterin debuted on CryptoPotato.

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