- DeFi star Andre Cronje has uploaded a new blog post that disseminates the current crypto turmoil
- Cronje has called for a stricter regulatory framework in the sector to protect consumer interests.
Andre Cronje, a DeFi pioneer and former founder of Yearn Finance, is back again with another blog post which calls for stringent crypto regulation in the sector.
Cronje published a lengthy medium blog titled “Crypto Winter of 2022,” which reviews the latest crypto collisions in the sector. The post outlines the need to build regulatory infrastructure in the industry to control the rampant devastation prevalent in the sector.
Is Andre Cronje Back Again?
Andre Cronje, former founder of Yearn Finance and a pioneering DeFi developer, has resurfaced after a long break. Cronje took to medium to share his thoughts packaged in a blog titled “Crypto Winter of 2022.”
The blog shares his insights and reviews of multiple crypto collisions and collapses that happened throughout the year. In addition, Cronje has called for stricter crypto regulation in the industry to protect and prioritise consumer interests.
“The answer to many regulators’ questions about how to protect consumers in the crypto-market is to apply comparative safeguards found in traditional finance. Namely: regulate the minimum reserves which may be held by any exchange, mandate that these service providers must be licensed; regulate risk exposure; apply standards of transparency; and include crypto-currency within the meaning of a financial product.” Cronje later shared
In a detailed blog post uploaded on October 26, Cronje dissected several crypto collapses of 2022 bit by bit, noting how the sector is in dire need of regulation to “rein in irresponsible actors and protect consumers.”
“The recent decline of the crypto-market has shown the flaws in the system and the need for regulation to rein in irresponsible actors and protect consumers.” Cronje later said
Cronje took his time to review each crypto collapse’ and bankruptcy in detail, including the recent Luna crypto crash, and the fall of Anchor Protocol, followed by the dissection of the Celsius network and Voyager Digital. He later concluded that crypto regulation is the need of the hour to protect the sector from further spiralling out of control.
“The market has clearly suffered economic distress after the collapse of multiple crypto exchanges and investment funds. The concentration of the market between a few large players shows possible manipulation (consider the few wallets which destabilised the Anchor protocol) both on-chain and using social media. The interconnectedness of the market also fails to insulate players from one another when one goes insolvent. The lack of transparency in these exchanges and investment funds—where consumers don’t actually know what is being done with their funds or understand what they are told—is clearly a problem of asymmetrical information. ” Cronje reiterated
Cronje later echoed the call for more stringent crypto regulation, which is in line with traditional finance, so that “consumers will both be protected and have access to remedies when experiencing loss.”
He further went ahead to introduce possible solutions to tackle the current crypto mayhem, stating the fact that the sector should practise remedies such as prudential supervision, deposit insurance, and consumer remedies in terms of “being able to approach the relevant prudential authority, or at least using overarching legislation as a framework when prejudiced by imprudent (or unlawful) banking practices.”
Cronje’s recent blog update has compelled the industry to question whether the leading DeFi developer is back for good. Cronje had earlier shocked the crypto world by announcing his retirement in early 2022.
Cronje, known as a prolific coder for founding Yearn Finance and Keep3rV1, is a software architect with 20 years of experience in the field of software development. Cronje’s path-breaking work in the domain of decentralised finance has been referred to as “pioneering” by several crypto proponents.