Vitalik Buterin fears disastrous crypto legislation
Vitalik Buterin, the brain behind Ethereum, is very concerned about the development of crypto legislation. According to Buterin the regulatory climate for the industry is beginning to evolve into an “anarchic tyranny” that is not in crypto’s best interest.
Unfair treatment of good entrepreneurs
The founder of Ethereum believes that the authorities are currently unfairly focusing on entrepreneurs who are just trying to follow the rules. People who are transparent about their way of working are dealt with by the authorities, while parties hiding in shady jurisdictions escape.
“The main challenge with crypto legislation (particularly in the United States) is the phenomenon that people who create meaningless things or ask investors for money in exchange for vague references to potential returns are free to do so.
But if you try to give clients a clear story about the origin of the potential returns and you inform them about their rights, you are ‘the loser’ because you then qualify as a ‘security’ for financial law and regulation,” says Vitalik Buterin.
According to him, this creates a climate in which it is better to be dishonest and to hide in vagueness, instead of creating a clear and safe climate for investors. For the industry, this is disastrous, according to him, because it encourages fraud.
Vitalik Buterin wants to turn it around
Vitalik Buterin would like to turn it around. He would like to see that parties that provide a clear picture of the added value of their token and provide an explanation remain out of the reach of legislators.
Now the opposite is the case and, according to him, that is a very bad thing for crypto.
Not long ago, Buterin also backed Alexey Pertsev and Roman Storm, the developers of Tornado Cash, built on Ethereum; a piece of technology that allows Ethereum to be used nearly anonymously.
Buterin sent another 30 Ethereum to the “Free Alexey & Roman” fund on May 30. At the time, that was a contribution of $113,678 to the cause of the two developers.
