.VitalikButerin has shared his take on the current state of cryptocurrency regulation
He believes that regulations that prevent cryptocurrencies from reaching the mainstream are now as bad as those regulations that hurt crypto projects internally. At the same time, he believes that the idea of imposing know-your-customer rules on decentralized finance frontends is not very “pointful” since it would “annoy” users while doing little to deter hackers. Buterin explains that bad actors actually write custom code in order to interact with smart contracts.
Buterin is in favor of moderate DeFi regulations that would include limits on possible leverage, stringent audit requirements as well as other measures. FTX CEO Sam Bankman-Fried praised Buterin’s suggestions, describing them as “pretty reasonable” in his tweet. Regulations remain a hot-button issue for the entire cryptocurrency industry, with many executives persistently clamoring for clarity.