The company in charge of the development of the popular decentralized exchange (DEX) Uniswap announced the restriction of several tokens through its website, as a way to continue with its “innovation and decentralization process”.
The information was published on July 23 on its website. With this decision, several tokens such as Tether Gold or synthetic bitcoin (sBTC) were removed from the list. However, the complete catalog includes more than 100 tokens .
This decision does not include the Uniswap protocol . The company points out that the prohibition of tokens is only at the level of its website, while the code remains open source and the tokens that users want can be added. On this point, Uniswap specifies the following: «These changes belong to the interface on the web page. The protocol remains completely autonomous, immutable and without permission. ”
The decision may be influenced by what the FATF has said about the cryptocurrency market. Also because of what the State Securities and Exchange Commission (SEC) has commented on the subject, which has generated even more pressure in the cryptocurrency market.
About The elimination of Tether Gold, Heydem Adams, creator of Uniswap said through his account on Twitter that this is due to a smart contract error . Tether Gold was blocked months ago. It has no value in the interface: to add liquidity it succeeds, but trading and removing always fails. In general, if we know an error like this, we block it on the web page. »
Before moving on to the next point , the difference between tokens and cryptocurrencies must be established. As CriptoNoticias has explained on other occasions, the tokens on a blockchain function as means of exchange . However, they can also have other functionalities, such as that they can represent all kinds of fungible, negotiable and even collectible goods. While a cryptocurrency is a digital asset that is created to function as a means of exchange between peers.
Twitter users believe that Uniswap’s decision sets a bad precedent
On the elimination of the tokens, Joey Krug, CEO of Pantera Capital, commented through his Twitter account the following: «I love Uniswap, but this sets a bad precedent in my opinion”. The executive opened a thread to continue making remarks on the subject: “History teaches with unmistakable emphasis that appeasement breeds new and bloodier wars. This will not be the first case of censorship. ”
One of Krug’s followers replied:“ So far the innovation. You are now running a DEX with a ‘no permission’ backup that most users don’t know how to directly interact with. ”
Added to it by the user Swag_ Stakepool: «How are these the actions of a DEX? Also, who are we? I understand the security aspect of this, but the decision-making seems consolidated among a few. All these comments suggest that the community will not support the decisions made by Uniswap .
Strategy fostered against Binance may have weighed on Uniswap’s decision
There are other actions that may have hastened Uniswap’s decision. For example, the strategy developed by financial institutions in Europe against Binance tokens . For example, entities from Germany have turned against him, Italy as well, so Binance has decided to eliminate certain tokens from its platform, as reported by CriptoNoticias.
The action is also added developed against the Blockfi platform. The company received an order from the Stock Exchange Bureau of the state of New Jersey , United States, to no longer accept residents of this jurisdiction as users of its service, which is focuses on loans and exchanges with cryptocurrencies and grants interest and other benefits to its clients.
Uniswap and BlockFi share the management of the tokens delegated to them by their clients, in the same way, as the securities contracts.
On the other hand, Gary Gensler, president of the United States Securities and Exchange Commission (SEC) warned on that the Regulatory body could exercise more lawsuits against token issuers . During his speech posted on the SEC website, Gensler noted the following: “Make no mistake: it does not matter if it is a stock token, a stable value token backed by securities or any other virtual product that provides synthetic exposure to securities. underlying assets. ”
In addition, he added:“ These platforms, whether in the decentralized or centralized financial space, are implied by the securities laws and must function within our securities regime ”. This can be seen as a direct message to Uniswap and other decentralized exchanges that still operate outside of the regulations of regulators.
