The creator of Ethereum (ETH) Vitalik Buterin expressed his opinion on the regulation of the cryptocurrency market:
«I don't think we need to rush at full speed to the capital owned by institutional investors. I am glad to delay the release of many ETFs. The ecosystem needs time to develop before it attracts even more attention».
The talented programmer believes that tightening control over the crypto market, as a result of which some companies cannot get permission to create ETFs, will benefit the digital asset industry, since regulatory measures are aimed at solving two main tasks:
• Protect the rights of consumers;
• Prevent illegal activities.
For Buterin, the main thing is that the authorities do not interfere in the functioning of blockchains, smart contracts and any software related to virtual currencies. In fact, he advocates the introduction of mandatory identification of the identity of exchange customers, but criticizes restrictions on the use of cryptographic protocols that ensure the anonymity of users.
Vitalik paid special attention to DeFi due to the huge losses that service providers and their customers suffer due to cyber attacks. To reduce risks, Buterin proposed introducing a limit on leverage and increasing the transparency of services, obliging startups to publish detailed reports on code audits.