Vitalik Buterin, the co-founder of Ethereum, recently spoke on cryptocurrency regulation, stating that he is somewhat pleased that regulators continue to reject requests for crypto exchange-traded funds (ETFs).
Buterin emphasized that the crypto business is still in its early phases of garnering institutional adoption due to the necessity for a thorough regulatory framework to control the market in a Twitter conversation on October 30.
Before adopting ETFs, the software engineer thinks the cryptocurrency field requires time to achieve a certain growth with a comprehensive regulatory architecture that can successfully eliminate bad players from exploiting the ecosystem.
Several Bitcoin spot ETF applications have already been rejected by the US Securities and Exchange Commission (SEC), including one that was submitted earlier this year by the top global asset management Grayscale Investments.
He added: “Basically, especially at this time, regulation that leaves the crypto space free to act internally but makes it harder for crypto projects to reach the mainstream is much less bad than regulation that intrudes on how crypto works internally”.
He expressed himself by stating that the “KYC on defi frontends” idea does not seem very pointful to him as it would annoy users but do nothing against hackers.
Buterin outlines two major objectives
The Ethereum co-founder stressed that protecting consumers and preventing bad apples from shifting funds across the ecosystem are the two key objectives of regulatory laws. Buterin said that protecting consumers and preventing bad apples from shifting funds across the ecosystem are the two key objectives of regulatory laws.
He added that the difficulties with the second objective are not limited to the DeFi ecosystem but rather affect all crypto payment systems, including centralized exchanges like Coinbase, Binance, and FTX.
Earlier in July Buterin clarified how he thinks that Ethereum is not a security. Meanwhile he isn’t the only one to have recently commented on cryptocurrency laws. Sam Bankman-Fried, CEO of the top cryptocurrency exchange FTX, outlined his regulatory goals for the sector earlier this month.