Vitalik Buterin Calls For Bank Deposit Insurance-Like Protection For Small Crypto Investors

Vitalik Buterin, the co-creator of Ethereum ETH/USD, wants more protection for the average cryptocurrency investor.

What Happened: Buterin pointed to the Federal Deposit Insurance Corporation in the United States and Singapore’s employment law as examples of protecting vulnerable individuals.

Buterin said that the FDIC is a precedent, in the sense it extends the protection of up to $250,000 per person in terms of deposit insurance.

Buterin, who is also a Singaporean citizen, said that in the city-state there is “stronger regulation” for low-earning employees and a more “figure-it yourself” approach for the wealthier. 

“IMO things like this are good hybrid formulas,” said Buterin. 

See Also: Best Crypto Debit Cards

Why It Matters: On Sunday, Buterin reacted to the TerraUSD (UST) fiasco and the resulting collapse in the value of the stablecoin along with the sharp depreciation in Terra (LUNA). 

The Ethereum co-creator said he strongly supports “coordinated sympathy and relief for the average UST smallholder” on Twitter.

Recently, a video emerged in which Buterin was seen saying weeks ahead of UST’s collapse that certain projects are “doing insanely risky undercollateralized, barely collateralized sort of stuff.”

Price Action: ETH traded 3.05% lower over 24 hours at $2,079.02, according to data from Benzinga Pro. 

Read Next: Vitalik Buterin Sends 500 Ethereum (ETH) Coins To Dogecoin Foundation

 

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Posted In: CryptocurrencyNewsMarketsEthereumFDICVitalik Buterin
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