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- Vitalik Buterin believes that distinguishing blockchain usage and crypto will not work.
- Buterin also acknowledges the country’s enthusiasm to be encouraging, but all these could be for nothing.
On Monday, Vitalik Buterin gave an interview with The Straits Times, a Singapore-based English language daily newspaper. In the interview, he stated that Sinagpore’s hospitable try at crypto rules may not accomplish, given its dubious approach to the asset class.
Buterin also acknowledges the country’s enthusiasm to be encouraging, but all these could be for nothing.
Regulators all over the world want to back the impending technologies but also find cryptocurrencies “unnatural and frightening” at the same time, he described.
In Singapore, the regulators try to differentiate between blockchain usage and cryptocurrency. India is attempting to go on the same way, and some Chinese regulators have already tried expanding blockchains that don’t need cryptocurrencies.
Although, Buterin said that there is a strong connection between blockchain and crypto, as you can not actually have one without the second one. He described:
“In my opinion, a few regulators in China undoubtedly attempted a little to have one without the second one and the actuality is, if you do not have cryptocurrency, then the blockchains that you are going to have are not real and nobody is going to pay attention over that.”
Regulators are “disheartening cryptocurrency theory”: Buterin
Also, the regulators are attempting to “dishearten cryptocurrency theory” without prohibiting crypto entirely. However, the country had prior placed itself as a crypto-friendly authority, it has initiated hardening rules over recent months.
Apart from that, Buterin accepted that it can be hard for countries and regulators to make a healthy balance between backing new technologies without becoming a peak point for bad crypto actors. But, when it is a matter of balancing crypto regulation, “there are better ways to do it, and there are worse ways also,” Buterin described.
After China prohibited the use of cryptocurrencies, many crypto companies ran away to more friendly authorities such as Singapore. However, the “major risk of being friendly” is that the countries finish as influencing people such as Terra co-founder Do Kwon, who is being interrogated for scam in the repercussions of the Terra-LUNA fall, Buterin commented.
Do Kwon spent goodly time in Singapore, and many persons got linked with the Terra-LUNA fall, as per Buterin:
“It is one hundred percent true that if a state is not much known about crypto rules, then they can effortlessly end up being frozen as the base for all of the Do Kwon people. And, it is not that compulsory that a country will want. Meanwhile, I think it is undoubtedly possible to take part productively and get benefited.”
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
