Decentralized Finance Crypto Exchange Uniswap Starts Blocking Addresses Linked To Blocked Activities – Uniswap, one of the most well-known decentralized finance exchanges in the bitcoin industry, is taking steps to ensure that unlawful funds are not exchanged on its platform.
The company has already begun blocking addresses tied to “blocked activities” and will utilize data from TRM Labs, a blockchain analysis startup that focuses on detecting illegal activities, to apply a filter.
The decentralized finance exchange, Uniswap, has taken steps to prevent illegal activity on its platform. The exchange has now implemented address filtering mechanisms that use its official frontend to log the addresses. TRM Labs, a blockchain firm that provides transaction monitoring services, compares these addresses to a blacklist.
Also Read: Japanese Carmakers Toyota and Nissan Enter the Metaverse
While the scope of these procedures is unknown, Uniswap describes what kind of activity it intends to keep out of its services in its address-screening FAQ. It states:
“Only wallets related with plainly illegal activities, such as terrorism financing, sanctions, hacked or stolen cash, ransomware, human trafficking, or child sexual abuse content, will be blocked.”
The pool of addresses that will be restricted from accessing the exchange’s official frontend has not been disclosed, and it is unclear whether it will be in the future.
Despite the fact that these additional measures were only announced last week, certain users have already indicated that they have been affected. When users attempt to trade currencies using a blacklisted address, they get a message stating:
“The Uniswap Labs interface has prohibited this address because it is linked to one or more blocked activity.”
The Uniswap Labs team leaves an open door for users who believe they have been flagged in error, allowing them to report their instances and see if the blockage may be lifted.
A huge portion of the bitcoin community reacted badly to the news, but it is consistent with what other decentralized finance firms have done in terms of compliance.
Also Read: US Treasury’s OFAC Adds 3 ETH Addresses Linked to North Korean Cybercrime Group to SDN List
Decentralized Finance Crypto Exchange Uniswap Starts Blocking Addresses Linked To Blocked Activities – Using an oracle contract offered by blockchain security firm Chainalysis, Tornado.cash, one of the most popular mixing protocols, is now restricting transactions from Ethereum addresses classified as sanctioned by the US Office of Foreign Assets Control (OFAC).
Users pointed out that blocked addresses can circumvent this by using different frontends or directly interacting with Uniswap or Tornado.cash contracts.
