Singapore's attempt to separate the use of blockchain from encryption is not feasible!

Nov 22,2022
Singapore's attempt to separate the use of blockchain from encryption is not feasible!

Vitalik Buterin, the co-founder of Ethereum, said in a statement that, in view of Singapore's scepticism about the asset class, Singapore's goodwill attempt to regulate encryption may not succeed in interviewing the XX Times on November 20.

Butlin said that he thanked the city and country for their willingness to provide support, but all this may be futile.

"I am very grateful for their efforts and their willingness to explore and support various applications."

He said: Regulators everywhere hope to support emerging technologies, but they also find cryptocurrencies "strange and terrible". Lack of understanding and fear of encryption makes regulators try to regard blockchain as a technology independent of encryption.

This is the case in Singapore, where regulators try to distinguish between blockchain and cryptocurrency. India is trying to take a similar approach, while some Chinese regulators have tried to deploy blockchains that do not use cryptocurrencies.

However, Butlin said that there is a "close connection" between blockchain and crypto, so "you can't really have one without the other." He added: "I think some Chinese regulators must try to own only one and not the other, but the reality is that if you do not have cryptocurrency, the blockchain you will own is just a fake, and no one will care about them."

However, Butlin said that Singapore's regulators are only trying to "stop speculation in cryptocurrencies", rather than completely banning cryptocurrencies. Although Singapore had earlier positioned itself as a crypto friendly jurisdiction, it had begun to tighten regulation in recent months.

In addition, Buterin acknowledges that it may be "difficult" for countries and regulators to strike a healthy balance between supporting new technologies without becoming a hot spot for bad encryption actors. However, when it comes to balanced encryption regulation, "there are good and bad methods," he said that after China's encryption ban, many encryption companies fled to more friendly jurisdictions, such as Singapore. However, the "biggest risk of friendship" is that these countries will eventually attract people like Do Kwon, co founder of Terra, who is being investigated for fraud after the collapse of Terra LUNA, Buterin said.

Tao Quan has stayed in Singapore for quite a long time, and many people are related to the collapse of Terra Luna. Butlin added: "There is no doubt that if a country is not smart in this respect, they will easily become the base of all Taekwondo people. This is not necessarily what that country wants. But on the other hand, I think it is completely possible to have fruitful participation and obtain a lot of benefits“

What can the password community do to stop the bad guys

According to Butlin, the Bitcoin community "automatically likes every rich and powerful person who supports Bitcoin", which is stupid. Buteirn reiterated his criticism of El Salvador's "top-down" adoption of Bitcoin last year. He said that the Bitcoin community was elated by the news, but ignored the grim reality of the country.

Buterin said that although the government of President Nayib Bukele of El Salvador was "not very democratic" and was not good at "respecting the freedom of the people", the community promoted El Salvador. He added: "This is an example of the mistakes that the cryptocurrency community may make, which encourage bad behavior."

According to Buterin, the Ethereum community has done better in choosing who to cooperate with. In addition, in terms of preventing bad behavior, the most that society can do is "actively support good things and oppose bad things," he said.

In addition, Butlin said, regulators can erect guardrails and communities can "educate users". But "there is a limit to how much bad behavior you can prevent", because the nature of the blockchain system requires that it be open to everyone.