Tuesday, June 25, 2024
14.3 C
London
HomeCrypto NewsI Am Kinda Happy a Lot of ETFs Are Getting Delayed: Vitalik...

I Am Kinda Happy a Lot of ETFs Are Getting Delayed: Vitalik Buterin

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

He further pointed out that the rules would only apply to the front end of the platforms, whereas hackers write codes to interact with smart contracts through the back end.

The Ethereum co-founder also mentioned that regulations on the front end could work if focused on limits on leverage, requiring transparency about audits and usage gated by knowledge-based tests instead of imposing net-worth minimum rules.

Two Main Regulatory Policy Goals
Buterin highlighted the two main goals of regulatory policies: consumer protection and making it impossible for malicious actors to move funds around the ecosystem.

He further noted that the issues around the second goal are not concentrated in the DeFi ecosystem but in the entire crypto payment systems, which includes centralized exchanges like Binance, Coinbase, and FTX.

Buterin is not the only key industry player to comment on crypto regulations in recent times. Earlier this month, Sam Bankman-Fried, CEO of the leading crypto exchange FTX, shared his regulatory visions for the industry.

The billionaire chief noted that the cryptoverse needs clear regulatory oversight to protect consumers from theft to ensure an open, free economy where users can transfer funds without restrictions.

مصدر

DISCLAIMER

As per the principles outlined by the Trust Project, Cryptozia remains dedicated to delivering impartial and transparent reporting. This news article is intended to offer precise and punctual information. Nevertheless, it is recommended that readers autonomously corroborate the facts and seek advice from a qualified expert prior to making any decisions reliant on this content.

latest articles

explore more