DeFi Heavily Criticized by its users After Denying Access to Wallet Content

Brad Mills informed about the denial to access Wallet Content on 1inch DeFi.

Decentralized Finance is severely criticized in the industry and by the users because of denying user access based on wallet content.

And on 6 November 2022, Entrepreneur Brad Mills posted a Tweet criticizing DeFi for denying users access to decentralized exchanges(DEXs) because of various factors like location and wallet content.

Because of this concern faced by Mills, he explained the future of Web3 as a “Surveillance panopticon” and futhure notes that it has incorrectly developed all things with Wall Street on a blockchain.

Some users of DeFi on Ethereum are being denied access to use decentralized exchanges based on things like your location & the contents of your wallet.
This is the future of web3, a surveillance panopticon.
They have rebuilt everything that’s wrong with wall st on a blockchain. pic.twitter.com/3uF1mZOZrf
— Brad Mills (🔑,🧀) (@bradmillscan) November 5, 2022

Mill’s tweet also has a picture that mirrors a pop-up notification highlighting that he is trying to use a 1inch dApp with a restricted wallet address.

While talking to the news outlet, the chief communication Officer of 1 inch Sergey Maslennikov noted that restricting wallets is part of the firm’s efforts to provide a safe and compliant community environment.

Sergey also notes, “Users’ wallets owned or associated with clearly illegal behavior like: sanctions, terrorism financing, hacked or stolen funds, human trafficking, and child sexual abuse material (CSAM) are prevented from interacting with the 1inch dApp.”

As per Sergey believes DeFi Aggregator complies with all applicable sanctions and sanction lists. In addition, DEX adheres to anti-money laundering (AML) and terrorist financing prevention regulations and the global community’s measures.

Earlier on 8 November 2022, TheCoinRepublic reported that Countries failing to enforce anti-money laundering(AML) guidelines for cryptocurrencies would be added to the “grey list” of the Financial Action Task Force.

On 7 November 2022, Aljazeera reported that FATF is preparing a roadmap to perform an annual investigation to assure that countries are implementing anti-money laundering and terrorist financing rules on crypto providers functioning in specific countries or jurisdictions.

In an interview with Aljazeera, Ron Trucker co-founder of the International Digital Asset Exchange Association(IDAXA), noted that “There is a real risk this will lead countries to unbank crypto exchanges, which will affect the end user — this is serious.”

United Arab Emirates(UAE) is becoming a new crypto hub, and it is believed that Dubai will become a global crypto capital.

UAE and the Philippines are also listed under the grey list of FATF. Still, both nations agreed and made a “High-level political commintment” to work with the global financial caretaker to boost their AML and CFT regime.

Scams and Frauds are common in every sector globally, but in the last few months, crypto sectors have seen massive hacks and scams.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing