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Ethereum co-founder Vitalik Buterin has criticised MicroStrategy founder Michael Saylor for suggesting that Bitcoin should be held in custody by large banks. Buterin takes issue with the idea of heavy regulation for crypto protection, stating this contradicts what cryptocurrency is about. Saylor believes big banks are designed to handle and secure financial assets, a viewpoint that has drawn widespread criticism from the crypto community. Buterin’s opinion comes amid an ongoing debate about the importance of self-custody in maintaining the strength of the Bitcoin network.

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Ethereum’s co-founder Vitalik Buterin recently had some strong words about MicroStrategy’s founder Michael Saylor. He thinks Saylor’s suggestion for crypto folks to big banks for Bitcoin custody is kind of crazy. His opinion is part of an increasing wave of criticism from the crypto crowd.

Buterin stated his views on Saylor’s comments while responding to an October 22 post from Jameson Lopp, the chief security officer at Bitcoin custody company Casa. Lopp had been discussing the importance of self-custody.

Saylor has been under fire after his remarks on October 21. He suggested that those who hold Bitcoin should trust it with mega banks. He believes these banks are built to handle and secure financial assets. This seems to contradict his previous take on self-custody.

Buterin concludes that Saylor clearly supports the idea of heavy regulation for crypto protection, with investment managers like BlackRock and Fidelity holding the asset. He adds that this strategy has a history of failing and doesn’t represent what crypto is truly about.

Saylor also had a few words about “crypto-anarchists” during his interview with financial reporter Madison Reidy. He warned that unregulated groups which do not recognize government, taxes, or reporting rules could lead to risks for asset seizure.

Ever since, the criticism towards Saylor’s views has been piling up. Lopp maintains that self-custody is not only vital for individual Bitcoin holders, but also for the whole network’s strength.

On October 22, Erik Voorhees, the founder of ShapeShift, threw his two cents into the debate. He expressed that the option to move Bitcoin to self-custody is essential as it guards against centralization. Voorhees found Saylor’s dismissal of this core principle incredibly lacking.

In a 2022 talk with Blockware’s lead analyst Joe Burnett, Saylor had listed several reasons he thought crypto should be managed by big centralized firms. This interview took place shortly after the FTX crash where users lost their Bitcoin on the platform.

Source: Cointelegraph