Uniswap is one of the most prominent decentralized cryptocurrency exchanges. It has taken steps to prevent illegal funds from being transacted through its platform. The company has already started blocking addresses linked to “blocked activities” and will apply a filter with data provided by TRM Labs, a blockchain analysis firm that focuses on detecting illegal activities.
Uniswap Investigates How It Works With Frontend
Uniswap has introduced measures to reduce illegal activity on its platform. The official frontend of the exchange now logs address information. This information is then used to compare the addresses with TRM Labs’ blacklist, which provides transactions monitoring services.
Although the exact extent of the measures are still not known, Uniswap explains in its address screening FAQ what activities it will exclude from its services. According to it:
Only wallets associated with illegal activity such as sanctions, terrorism financing or ransomware will be blocked.
It is not known if the exchange will provide the list of addresses it intends to block from its official frontend.
Users affected
Although these measures were officially announced last week by the company, many users already have them. reportedThese can cause them to be adversely affected. Users receive an error message when they attempt to change currencies with a flagged address.
Because it’s associated with one or several blocked activities, this address has been blocked by the Uniswap Labs interface.
Uniswap Labs allows users to flag their case to see if there is a way to get the problem resolved.
While the news was viewed negatively by many in cryptocurrency, it is consistent with compliance efforts of other decentralized finance service providers. One of the most popular mixing protocols Tornado.cash is blocking transactions to Ethereum addresses that have been sanctioned under the U.S. Office of Foreign Assets Control. This was done using an Oracle contract from Chainalysis, a blockchain security firm.
However, usersIt was pointed out that blocks can use other frontends, or directly interact with Tornado.cash.cash to bypass this.
What do you think about Uniswap’s new measures to block addresses potentially linked to illegal activity from transacting on the platform? Comment below.
Images CreditsShutterstock. Pixabay. Wiki Commons
DisclaimerThis information is provided for educational purposes only. This article is not intended to be a solicitation or offer to sell or buy any product, service, or company. Bitcoin.com doesn’t offer investment, tax or legal advice. This article does not contain any information, products, or advice that can be used to cause or alleged result in any kind of damage.
