Singapore’s attempt to separate blockchain usage and crypto will not work: Vitalik Buterin

Ethereum co-founder Vitalik Buterin said Singapore’s well-intentioned attempt to regulate cryptocurrencies may not work. interview In The Straits Times on November 20th.

Buterin said he appreciates the city-state’s willingness to help, but that it could all be in vain.

“We really appreciate the tremendous effort they have put into it and their willingness to explore and help different kinds of applications.”

He said that regulators around the world want to support emerging technologies, but also see cryptocurrencies as “weird and scary.” The lack of understanding and fear of cryptocurrencies has led regulators to treat blockchain as a technology separate from cryptocurrencies.

This is the case in Singapore, where regulators seek to distinguish between blockchain usage and cryptocurrencies. India is looking to adopt a similar approach, while some Chinese regulators are already trying to roll out blockchain without cryptocurrencies.

However, Buterin said there is a “close relationship” between blockchain and cryptocurrencies, and that “one or the other really cannot exist.” he added:

“I think some of the Chinese regulators are definitely trying to have one without the other. Yes, and no one cares about them.

But Singapore’s regulators are only “trying to discourage cryptocurrency speculation” without banning cryptocurrencies outright, Buterin said. Singapore, which previously positioned itself as a crypto-friendly jurisdiction, has started tightening regulations in recent months.

Moreover, Buterin said it can be “difficult” for countries and regulators to strike a healthy balance between supporting new technologies without becoming hotspots for malicious crypto actors. But when it comes to balancing crypto regulation, “there are good ways to do it, and there are bad ways to do it,” he said.

After China’s crypto ban, many crypto companies fled to more friendly jurisdictions like Singapore. But the “biggest risk of being friendly” is that the two countries will attract people like Terra co-founder Do Kwon, who is being investigated for fraud in the aftermath of the Terra-LUNA collapse. , he said Buterin.

Dogwon spent a good deal of time in Singapore and many were involved in the fall of Terra Luna. Buterin added:

“If the country isn’t smart about it, it’s definitely true [crypto regulation]they could easily get stuck as a base for all Dokwon people.

But on the other hand, I think it’s definitely possible to get involved productively and get a lot out of it. ”

What the Crypto Community Can Do to Discourage Bad Guys

According to Buterin, the Bitcoin community “automatically loves everyone rich and powerful who supports Bitcoin”, but this is stupid. Buteirn echoed his criticism of El Salvador’s “top-down” Bitcoin adoption last year, saying the Bitcoin community was delighted with the news while ignoring the country’s grave realities.

Salvadoran President Naive Bukele’s government is “not very democratic” and not good at “respecting people’s freedom”, but the community is promoting El Salvador, Buterin said. he added:

“This is an example of the mistakes the cryptocurrency community can make to enable bad behavior.”

According to Buterin, the Ethereum community is good at choosing who to promote and who to partner with. Besides, when it comes to preventing villains, what the community can do is “actively support the good and oppose the bad,” he said.

Separately, regulators can set guardrails and communities can “educate users,” Buterin said. Because of the need, “there are limits to what bad activity can be prevented”.