Regulation: a little, a lot, avidly? – Perhaps the theme for this year 2022 isRegulatory arrival in the world of coding. A set of European directives that cryptocurrency startups and investors will have to comply with in the coming years. After avoiding the topic for months, the co-founder of Ethereum, Vitalik ButerinHe jumps into the water. over here banner On the thorny issue of regulating cryptocurrencies!
Regulation, when we stuck
Cage ready to rein in innovation in the sector? Or a launching pad preparing for a tidal wave of mass adoption? which side to organize Will it tip the scales? Since nothing is ever either completely black or white, it’s likely that we are witnessing a middle ground. Vitalik Buterin He took up the issue on Twitter on October 30, at a thread Hinge.
Founding partner ofEthereum highlighted first The pursuit of institutionalization From the sector desired by many investors. In fact, the latter often hope for one thing: that massive capital inflows Professionals flock to this sector for pump their preferred cipher. For Vitalik, this is not a good thing:
“I am very happy that a lot of ETFs 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 turbulent times, regulation should allow the cryptocurrency ecosystem to act freely, even if it makes the task of attracting a general public to the project more complicated. Indeed, according to him, A.S strict regulation Who is now striving to penetrate deeply into the internal mechanisms of cryptocurrencies, who are often in the draft stage, is not desirable.
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A slate ready to nip any crypto initiative in the bud?
To organize without trying to understand, Europe could deprive itself of the giants of tomorrow. This saying is very clear, especially with our bitter failure experience through Go to the InternetIt’s a pity that you have to repeat it so often. L’absurdity from some organizational axes Considered by Vitalik.
Europe organizes, pirates laugh
Usually, setting up a procedure Know your customer (know your customer) systematic for all protocols a challenge (Decentralized Finance) appears inappropriate.
“It will annoy users without access to hackers. In fact, they interact directly with smart contracts, via code that they write themselves.”
Vitalik Buterin
On the other hand, positioning Know your customer at the exchange levelbastions of real liquidity, is a good idea to combat money laundering. But it has already been done on most of them.
Protecting Cryptocurrency Investors: Proposals by Vitalik Buterin
According to Vitalik, several smarter steps can be taken to better protect investors. usually, Limited leverage or request a Transparency the total audit Implemented on smart contracts for protocols.
Conversely, forcing a KYC commitment of €1 to be transferred between anonymous wallets is absurd. But this is the condition in TFR program (Money Transfer Regulations). According to Vitalik, the authorities must validate the use of verification from a certain level of Knowledge of the environment rather than imposing arbitrary financial restrictions.
Moreover, the head of Ethereum would love to have these regulations in line with Zero-knowledge proof technology. ZK Proofs already provides a framework to meet both the regulatory policy that governments want and the privacy of users. In short, the best of both worlds.
As said Sean Parker To Mark Zuckerberg on the birth of Facebook, “We don’t yet know what it represents, and how it can grow and develop.”. The same applies to cryptocurrencies. No one dared to imagine the impact of NFTs on our world just a couple of years ago. And at that time, the term DeFi was still vague. Who can pretend today to guess what revolutions will be revealed next year or two? It is these revolutionary ideas that germinate in the heads of well-made venture startups LawsOut of misunderstanding and stupidity, trampling danger With his big boot, nibbling at the cradle of a twist “Internet of Value” in Europe.
Regulations should not distract you from cryptocurrency! Start earning bitcoin and cryptocurrency now. Take the opportunity to support Journal du Coin with this commercial link By registering on the Binance platformthe absolute benchmark in the sector (commercial link).