March 29, 2024

Vitalik Buterin: The crypto ecosystem needs time to mature before falling under the knife of regulators

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Vitalik Buterin: Crypto Ecosystem Needs Time to Mature Before Falling Under the Knife of Regulators

The co-founder of Ethereum said that, given the current circumstances in the market,against laws that affect the inner workings of the crypto ecosystem.

Vitalik Buterin believes that it is better to have rules that ensure the internal independence of crypto projects, even if it is an obstacleTheir mass implementation:

"I'm actually a little bit glad that the registration of many exchange-traded funds (ETFs) is delayed.An ecosystem needs time to mature before it receiveseven more attention from regulators."

The co-founder of Ethereum believes that the use of know-your-customer (KYC) in decentralized finance (DeFi) is a challenge.At the same time, Buterin is aware of the need for KYC on crypto exchanges, which have become very widespread.

"KYC on DeFi interfaces will annoy users, but it won't do anythingHackers have already learned how to write their own code to interact with smart contracts," Buterin warned.

He believes that an effective way to comply with regulations while preserving user privacy is to use zero-knowledge proof: 

"Rules should be written in such a way that requirements can be met as much as possible with zero-knowledge proofs."

At the same time, Buterin calls for compliance with the rules in the Ethereum ecosystem.The co-founder is convinced that ETH network validators should be tolerant and not censor transactions that do not complytheir beliefs.