Regulation: a little, a lot, with passion? – The subject of this year 2022 was probablythe arrival of the regulation in the crypto universe. A set of European directives that crypto startups and investors will have to comply with in the coming years. After avoiding the topic for many months, Ethereum co-founder, Vitalik Buterin, is thrown into the water. Here is his opinion on the sharp issue of crypto regulation!
Regulations, when you keep us
A cage ready to stifle innovation in this sector? Or a springboard that prepares a tidal wave of mass adoption? From which side rule Will it tip the scales? Since nothing is black and white, it is likely that we are witnessing a middle ground. Vitalik Buterin took up the topic on Twitter on October 30, in a yarn detailed.
The co-founder ofEthereum first emphasized the search for institutionalization of the sector desired by many investors. In fact, the latter very often hope for only one thing: that massive capital inflows professionals are pouring into the sector for it PUMP their favorite crypto. For Vitalik, this is not a good thing:
“I’m quite happy that many ETFs (exchange-traded funds) have been delayed. »
ETFs are exchange-traded funds that seek to replicate the value and performance of a particular index. In this case, BTC and ETH.
For Vitalik, especially in these lean times, regulation should allow the crypto ecosystem to operate freely, even if it makes the task of attracting the general public more complex for projects. Indeed, according to him, a aggressive adjustment which would now seek to delve deep into the inner workings of crypto, often still in the draft stage, is not desirable.
A regulation ready to quash any crypto initiative in the first place?
To fix without trying to understand, it is possible that Europe will deprive itself of the giants of tomorrow. This maxim is so obvious, all the more so with the experience of our long bitter failure go online, that it is unfortunate that you have to repeat it so often. L’absurdity from some regulatory axes considered is emphasized by Vitalik.
Europe rules, hackers laugh
Typically, setting up a procedure key (Know your customer) systematic for all protocols Challenges (decentralized finance) appears inappropriate.
“It will annoy the users without getting to the hackers. Indeed, they interact directly with smart contracts, through the code they write themselves. »
On the other hand, positioning KYC at exchange levelthe real bastions of liquidity, is a good idea to fight money laundering. But this is already done for most of them.
Protecting Crypto Investors: Vitalik Buterin’s Proposals
According to Vitalik, some smarter steps can be taken to better protect investors. In a typical way, limit leverage or ask for a tRANSPARENCY total audits performed in the protocols smart contracts.
In contrast, imposing a KYC obligation from 1 euro transferred between anonymous wallets is ridiculous. But it is still in demand TFR program (Regulation on fund transfers). According to Vitalik, the authorities must prove the use by verification of a certain level of knowledge of the environment rather than imposing arbitrary financial restrictions.
Moreover, the head of Ethereum would like these regulations to be in line with zero knowledge proof technology. ZK Proofs indeed provides a framework to meet the regulatory policy desired by governments and user privacy. In short, the best of both worlds.
As said Sean Parker Mark Zuckerberg at the birth of Facebook, “We don’t even know yet what it represents, how it can grow and develop”. The same is true for cryptos. No one dared to imagine the impact of NFTs on our world just two years ago. And at that time, DeFi was still an unknown term. Who can pretend today to guess what revolutions will be discovered next year or two years from now? It is these revolutionary ideas that sprout in the well-crafted heads of adventurous startups REGULATIONfrom misunderstanding and stupidity, risk of trespassing with his big shoes, nipping the development in the bud “Valuable Internet” in Europe.
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