Uniswap, the decentralized finance exchange, is taking action against illegal activity carried out through its platform. Address screening procedures that record the addresses using its official frontend are being introduced by the exchange. Then blacklists provided by TRM Labs, a blockchain company that offers transaction monitoring services are compared with these addresses.
The details regarding the measures are still unknown however Uniswap briefs about the kind of activities it wants to curb.
Uniswap shares that it plans to only block wallets that are linked with illegal activities such as terrorism financing, child sexual abuse material (CSAM), hacked or stolen funds, ransomware, human trafficking, and sanctions.
However, the exchange didn’t reveal the pool of addresses that it’s going to block from using its official frontend. Besides, it is also not confirmed it will do so in the future.
Why Are Users Not Happy?
The announcement of the new measures was made last week and already some users have been informed that they have been affected by them. Users receive a message as given below whenever they try to exchange currencies using a flagged address:
“This address is blocked in the Uniswap Labs interface because it is associated with one or more blocked activities.”
The Uniswap Labs team also allows users to report their cases in order to get information if the blockage can be lifted, hence leaving a door open for users who think that they have been flagged.
While the crypto community didn’t give a warm welcome to the news, it however is in accordance with the actions other decentralized finance services have done in matters of compliance. Tornado.cash, one of the largest mixing protocols, using an oracle contract offered by Chainalysis, a blockchain security firm that is now blocking transactions from Ethereum addresses listed as sanctioned by the U.S. Office of Foreign Assets Control (OFAC)
Meanwhile, users say that the blocked addresses can make use of frontends and directly use Tornado.cash or Uniswap contracts to evade this.
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Source: https://www.thecoinrepublic.com/2022/04/27/uniswap-announces-measures-for-combating-illegal-activities-on-its-platform/