Ethereum’s Vitalik Buterin Addresses The “KYC On DeFi Frontends” Idea

It seems that Ethereum’s Vitalik Buterin has a different opinion about the KYC idea than most. Check out what he had to say about the subject below.

Here’s the relevant tweet that Buterin shared on his social media account:

The “KYC on defi frontends” idea does not seem very pointful to me: it would annoy users but do nothing against hackers. Hackers write custom code to interact with contracts already. Exchanges are clearly a much more sensible place to do the KYC, and that’s happening already.

— vitalik.eth (@VitalikButerin) October 30, 2022

He said the following:

“Basically, there’s two main classes of regulatory policy goals: (i) consumer protection, (ii) making it harder for baddies to move large amounts of money around. The issues around (ii) are concentrated not in defi, but in large-scale crypto payments in general.”

He also made sure to explain these important points:

“Regs on defi frontends that *could* be more helpful may include:

(i) limits on leverage
(ii) requiring transparency about what audits, FV or other security checks were done on contract code
(iii) usage gated by knowledge-based tests instead of plutocratic net-worth minimum rules”

Regarding the price of ETH today, at the moment of writing this article, ETH is trading in the red and the coin is priced at $1,594.

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The new project, called the Blockchain Node Engine, is a managed node-hosting service that aims to minimize the need for node operations, according to a new blog post from Google Cloud executives. Stay tuned for more news.