SBF on regulation of cryptocurrencies

Sam Bankman-Fried (often just SBF) explains his views on crypto regulation. His demands are perceived as contradictory by large parts of the crypto scene. His support for blockchain network censorship is causing an outcry.

SBF expects this crypto regulation

Bitcoin arbitrage trading made Sam Bankman-Fried wealthy. He then founded the crypto exchange FTX, which according to Coinmarketcap is now one of the largest services of its kind.

In a new Twitter post , the American explains his views on crypto regulation. He gives a detailed statement on the blog of his crypto exchange.

In summary, SBF explains that the crypto industry needs to be regulated to give consumers security. At the same time, however, one must pay attention to the openness and freedom of industry.

For example, program code, validators and transactions between individual users should always remain free and unrestricted. SBF specifically chooses these examples because the industry has already experienced upheavals on these points .

SBF wants to say that regulation is beneficial and before legislation reacts, the industry must regulate itself through independently established standards.

Demand for crypto regulation causes outcry

It was probably foreseeable that SBF’s statements would not be met with much enthusiasm in the crypto scene. After all, the scene is largely very liberal. A lot of users have a libertarian worldview.

In fact, the entrepreneur’s statement can be interpreted, at least in part, as contradictory. After the 30-year-old demands freedom, he speaks out in favor of censorship. Literally:

We have blacklists for unauthorized financial activities. We need fast, reliable lists of addresses associated with illegal funding. But peer-to-peer transfers should generally be free as long as they don’t go to sanctioned actors.

Under this post, many users express themselves ironically or mockingly about SBF. One of the most important goals of full-fledged cryptocurrencies is the preservation of freedom from censorship. However, the FTX founder calls for increasing censorship, which can be observed anyway due to current events.

Neither you nor your friends should have the power to classify financial activities as illicit.

A user replies . His reaction is still part of the moderate part of the answers.

Crypto hacks are said to decrease

The crypto industry has become arguably the most lucrative business hackers have ever had. Just last week, four crypto projects fell victim to hacks in just one day. It hit Rabby Swap, Paraswap, Temple DAO and Mango Markets . The accumulated damage: Over 115 million US dollars.

SBF demands that the safety standards in the industry increase so that damage does not occur as often from now on. He currently believes that social standards are the best solution to the problem. Hackers should voluntarily return stolen funds. This behavior can be forced by developers of the affected project being more willing to pay high error premiums.

Since this idea is based on a voluntary basis, it cannot be forced. Also, among black hat hackers, theft is always part of the plan. It is therefore unlikely that they will return their prey.