Vitalik Buterin, co-founder of Ethereum has outlined what he deems to be useful alternatives amidst intense disputes about prospective DeFi legislation.
According to a sequence of tweets, Buterin said that the two primary regulatory aims are safeguarding customers and making it more difficult for bad actors to transfer money. He offered three methods for accomplishing this, including reducing dependence on DeFi protocol front-end websites, mandating audit transparency, and restricting access to tools via the use of knowledge exams.
Buterin noted that he would want to see zero-knowledge technology used to satisfy such demands. This technique makes it possible to mathematically verify anything without revealing the underlying facts.
In addition, he critiqued further possible methods of governing DeFi protocols. Putting know-your-customer rules on DeFi front ends, according to him, would just bother consumers and not deter hackers. This is due to the fact that malicious actors interact directly with the protocols and do not need access through the front ends. He emphasized that centralized exchanges are a much more suitable location for this sort of regulation.
The co-founder of Ethereum said that the crypto business needs more time to grow before it is suitable for mass usage, which would necessitate more laws.
Buterin noted that he was pleased that many exchange-traded funds are being delayed, as it gives the cryptocurrency sector more time to grow and improve.
“In general, and particularly at this moment, legislation that leaves the crypto space free to function internally but makes it more difficult for crypto initiatives to reach the mainstream is far less harmful than policy that interferes with how crypto works internally,” he added.
Also Read: Apollo Offers Bitcoin Custody For Businesses
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.