Vitalik Buterin talked about the influence of legislation on cryptocurrency. The creator of Ethereum expressed support for any legislation that makes it simpler for the sector to gain widespread adoption. But he labeled as terrible anyone who interferes with how blockchain technology operates.
This comment builds on Buterin’s past views, in which he underlined the value of adoption and the reason it is crucial to remove any obstacles that would prevent the cryptocurrency market from thriving.
Sam Bankman-Fried, the founder of FTX, had suggested KYC for DeFi frontends, which Buterin also commented on.
According to the creator of Ethereum, such an attempt is useless because it would simply irritate consumers. Cryptocurrency hackers will still be able to create programs that work directly with smart contracts in the interim.
In addition, Vitalik Buterin noted that all regulations aim to accomplish two objectives: protecting consumers and making it challenging for thieves and other bad actors to move substantial sums of money around.
The creator of Ethereum stated that problems with money laundering are “concentrated not in DeFi, but in large-scale crypto payments in general.”
He nevertheless suggested rules to the DeFi front ends. Leverage restrictions, the need for transparency in audits and security checks for contract codes, and usage restrictions based on knowledge-based assessments rather than net value were a few among them.