Uniswap

Decentralized Finance Crypto Exchange Uniswap Begins Banning Addresses Associated with ‘Prohibited Activities’ – Defi Bitcoin News

Uniswap, one of the major decentralized financial exchanges in the cryptocurrency world, is now taking measures to ensure that illicit funds cannot be transacted using its platform. The company has already started blocking addresses linked to “prohibited activities” and will apply a filter with data provided by TRM Labs, a blockchain analysis firm focused on spotting illegal activities.

Uniswap checks the addresses that interact with its front end

Uniswap, the decentralized finance exchange, has taken measures to curb illegal activity conducted using its platform. The exchange has now introduced an address vetting procedure that registers addresses using the official front end. These addresses are then compared to a blacklist provided by TRM Labs, a blockchain company that provides transaction monitoring services.

While the extent of these measures is still unknown, in the Address Screening FAQ, Uniswap makes clear what kind of activities it wants to exclude from utilizing its services. It states:

We intend to ban wallets owned or associated with clearly illegal behavior such as: sanctions, terrorist financing, hacked or stolen funds, ransomware, human trafficking, and child sexual abuse material (CSAM).

The exchange has not provided the set of addresses that will be banned from using the official frontend, and it is unknown if it will do so in the future.


Affected users

While these new measures were announced last week, some users have already announced mentioned affected by it. When users try to exchange coins using a tagged address, they receive a message stating:

This address is prohibited in the Uniswap Labs interface because it is associated with one or more prohibited activities.

The team at Uniswap Labs leaves the door open for users who believe they have been misreported, allowing them to report their cases to inquire if the blockage can be lifted.

The news was received negatively by a wide range of the crypto community, but it is in line with what other decentralized finance services have done on compliance issues. Tornado.cash, one of the largest shuffling protocols, is now blocking transactions from Ethereum addresses listed as sanctioned by the US Office of Foreign Assets Control (OFAC) using an Oracle contract provided by blockchain security firm Chainalysis.

But, users He noted that blocked addresses can also use other frontends or interact directly with Uniswap or Tornado.cash contracts to circumvent this.

What do you think of Uniswap’s new measures to block addresses potentially linked to illegal activity from transacting on the platform? Tell us in the comments section below.

sergio@bitcoin.com

Sergio Goshchenko

Sergio is a cryptocurrency journalist based in Venezuela. Describing himself as a latecomer, he got into the crypto world when the price spike occurred during December 2017. Because he has a background in computer engineering, lives in Venezuela, and is influenced by the crypto boom on a social level, he offers a different perspective on the success of crypto and how it helps people. Those who do not deal with banks are disadvantaged.

photo credits: Shutterstock, Pixabay, Wiki Commons

Not giving an opinion: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the Company nor the author shall be liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Leave a Comment

Your email address will not be published.