Former DeFi Project Founder Calls For Strict Cryptocurrency Regulations

Andre Cronje (a well-known developer, and founder of decentralized finance (DeFi) projects) has come to the front following a lengthy break to call for strict regulations covering the sector of cryptocurrency amid the collapse of several companies this year.

Andre Cronje Echoes Sam Bankman-Fried’s Words While Calling for Strict Crypto Regulations

The remarks made on the behalf of Cronje are analogous to Sam Bankman-Fried’s who is the CEO of a crypto exchange called FTX. The executive recently called for enhanced standards to be implemented in the industry. These standards dealt with improved consumer protection, disclosures, as well as transparency. The FTX CEO received resilient pushback from the community members.

Several in the community alleged that he was attempting to censor or monopolize the world of decentralized finance (DeFi) along with the rest of such things. A blog post was published on the 25th of October in which Cronje emphasized that there was a need for stringent regulation to provide protection to the customers and control those who play the role of irresponsible actors.

Cronje mentioned that the current year has been disappointing for the world of cryptocurrency as he indicated the Terra ecosystem’s decline in addition to many other venues, especially those which lend crypto assets, putting a huge negative influence on the customers. He focused on better customer protection, particularly in the case of the entities providing crypto investment facilities and crypto exchange services.

In this respect, he referred to the ongoing complicated bankruptcy case of Celsius. He disclosed that Celsius users are finding it too hard to get their funds back. According to him, the solutions in the present regulatory regime do not have effectiveness. In his words, the areas like prudential supervision and deposit insurance (which are offered in conventional finance) have not yet been introduced in the crypto world.

While discussing prudential supervision, he asserted that the predominant authorities existing in the sector could enhance trust in crypto assets. He elaborated on this by saying that the central banks may assume the role of supervising entities to deal with the elements like risk sensitivity, liquidity, earnings, management resilience, asset quality, and capital.

DeFi Forerunner Declares Leaving DeFi-Related Activities Altogether

Cronje is categorized among the most prominent figures in the movement of decentralized finance, partly because of introducing Yearn.finance a couple of years ago as well as his work regarding many DeFi protocols. Nonetheless, in March 2022, he declared quitting his operations dealing with the respective industry.