Ethereum co-founder, Vitalik Buterin advises the crypto industry not to pursue “large institutional capital”


  • Ethereum co-founder expresses his views on the regulations imposed on the crypto sector worldwide.
  • According to him, sanctions will legitimize digital currencies and assets at the same time will change their basic DNA.
  • He says that these regulations can change the course of crypto forever.

The Crypto sector including NFTs and other digital assets has been constantly the target of regulatory bodies and governments worldwide. While cryptocurrencies aspire to offer a peer-to-peer and decentralized medium of transactions. The regulations on cryptocurrencies mock their basic goal.

In a series of Tweets, Ethereum co-founder Vitalik Buterin expressed his concerns over the imposition of regulations on cryptocurrencies. According to him, these regulations and guidelines will legitimize cryptocurrencies. However, the same rules will alter the basic DNA structure of the cryptocurrencies.

Cryptocurrencies were invented with the sole purpose of facilitating decentralized, transparent, instant, and secure transactions away from the complexities of any central authority. But the regulations imposed on cryptocurrencies by regulatory bodies will make them prone to censorship and bring decentralization principles into question.

Buterin in his Tweet said that crypto entrepreneurs should not “enthusiastically pursuing large institutional capital at full speed.”

Regulatory barriers restrict the scope of institutional crypto investments. The Institutional Investor Digital Assets Study found that more than 16% of institutional investors lack clarity on crypto regulations. It is a major obstacle in their decision to invest in digital assets.

The good thing is that 43% of institutional investors consider investing in Bitcoin ETF as profitable. While 81% of the investors regard virtual assets as an important part of their portfolio.

A major community of the crypto industry has been involved in institutional crypto investment for a ling time. According to Vitalik, it is not a disappointment.

He said,

I’m actually kinda happy a lot of the ETFs are getting delayed,

He also addresses the matter of requiring Defi protocol front-ends to abide by Know Your Customer (KYC) standards.

Buterin is also looking forward to how Zero-Knowledge Proofs will transform the crypto industry. He stands in support of the ZKP protocol and believes that regulations should be drafted in a way that enables the ZKP protocol to function.

Vitalik’s Tweets come 10 days after the controversial blog post of Sam Bankman-Fried. He is the Founder and chief executive of the cryptocurrency exchange FTX.

In the blog post, he capitulated to Crypto Twitter in response to criticism of possible Defi regulations, such as mandating autonomous programs to abide by American sanctions and requiring cryptocurrency websites to register as broker-dealers.