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Restating my comment from Celsius unwinding one month ago: Three clear and obvious outcomes of this unwinding: 1. The crypto mantra "not your keys, not your c

Restating my comment from Celsius unwinding one month ago: Three clear and obvious outcomes of this unwinding: 1. The crypto mantra "not your keys, not your coins" rings true. 2. Entrusting your personal financial data with a private company is sure to end in disaster, either by hack or court order. Privacy should be a basic and legally protected feature of blockchains. 3. Centralized Finance or CeFi is mostly a sham and deserves to be heavily regulated. Not to be confused with on-chain and transparent Decentralized Finance or DeFi platforms like Aave that have behaved predictably through this downturn, and have never required KYC. https://news.ycombinator.com/item?id=33153865 https://news.ycombinator.com/item?id=33153865 We haven’t seen privacy and KYC be an issue yet with FTX but data breach could be next after the money goes.

maccard 4y ago
> The crypto mantra "not your keys, not your coins" rings true. Until crypto has a workable solution to this that doesn't rely on me keeping paper copies of my master key in a safe, it's not really viable for the masses without exchanges like coinbase and co. > Entrusting your personal financial data with a private company is sure to end in disaster, either by hack or court order Hard disagree here. In all my years of interacting with private companies they have always protected my money, even when it was taken from me fraudulently. > Centralized Finance or CeFi is mostly a sham and deserves to be heavily regulated. I dunno, cefi works pretty well for me. Of course the difference is that the cefi institutes and private companies are regulated traditional banks. > Privacy should be a basic and legally protected feature of blockchains. For a decentralised system that touts it's benefits as not being tamperable, a legal protection is worthless. If we require legal protections for blockchains what value does that prove over a centralised regulated system? Also, as it's decentralised and privacy focused there's nothing stopping someone in a country with a different interpretation of "legal protection" being involved. >We haven’t seen privacy and KYC be an issue yet We absolutely have, with AML checks. Try cashing out 100k of crypto and using it as a deposit for a mortgage with a bank or lender, and see how open to it they are. This has been the case for at least 3-4 years here in the UK.
- zeroclip 4y ago
  See social recovery wallets, paper wallet isn’t only solution. Masses might prefer a custody on exchange but with that comes risk like in Celsius, FTX. Regulation needed to curb this risk so that those services feel just like the other “safe” CeFi services you are used to. > In all my years of interacting with private companies they have always protected my money, even when it was taken from me fraudulently. I was talking about data. On a long enough timeline, all financial services holding user data will be vulnerable to a breach. Money maybe also vulnerable but less so if regulated, I guess you are lucky to be interacting with regulated exchanges. > If we require legal protections for blockchains what value does that prove over a centralised regulated system? Regulate the companies, like Celsius and FTX. Users can use these on and off ramps into blockchain with more regulatory oversight and assurances their assets won’t be leveraged without their consent. Your last point seems like misunderstanding. I say we haven’t yet seen FTX user data and privacy be breached.

maccard 4y ago

> The crypto mantra "not your keys, not your coins" rings true. Until crypto has a workable solution to this that doesn't rely on me keeping paper copies of my master key in a safe, it's not really viable for the masses without exchanges like coinbase and co. > Entrusting your personal financial data with a private company is sure to end in disaster, either by hack or court order Hard disagree here. In all my years of interacting with private companies they have always protected my money, even when it was taken from me fraudulently. > Centralized Finance or CeFi is mostly a sham and deserves to be heavily regulated. I dunno, cefi works pretty well for me. Of course the difference is that the cefi institutes and private companies are regulated traditional banks. > Privacy should be a basic and legally protected feature of blockchains. For a decentralised system that touts it's benefits as not being tamperable, a legal protection is worthless. If we require legal protections for blockchains what value does that prove over a centralised regulated system? Also, as it's decentralised and privacy focused there's nothing stopping someone in a country with a different interpretation of "legal protection" being involved. >We haven’t seen privacy and KYC be an issue yet We absolutely have, with AML checks. Try cashing out 100k of crypto and using it as a deposit for a mortgage with a bank or lender, and see how open to it they are. This has been the case for at least 3-4 years here in the UK.

zeroclip 4y ago
See social recovery wallets, paper wallet isn’t only solution. Masses might prefer a custody on exchange but with that comes risk like in Celsius, FTX. Regulation needed to curb this risk so that those services feel just like the other “safe” CeFi services you are used to. > In all my years of interacting with private companies they have always protected my money, even when it was taken from me fraudulently. I was talking about data. On a long enough timeline, all financial services holding user data will be vulnerable to a breach. Money maybe also vulnerable but less so if regulated, I guess you are lucky to be interacting with regulated exchanges. > If we require legal protections for blockchains what value does that prove over a centralised regulated system? Regulate the companies, like Celsius and FTX. Users can use these on and off ramps into blockchain with more regulatory oversight and assurances their assets won’t be leveraged without their consent. Your last point seems like misunderstanding. I say we haven’t yet seen FTX user data and privacy be breached.