Community criticises Uniswap’s KYC function

In the repository of the fourth version of the decentralized exchange Uniswap обнаружили a function that allows configuring the KYC verification procedure. The community saw risks in this.

❤???

Disappointing NEWS:

Uniswap is bringing out KYC Verification in the form of a Hook for Uniswap v4.

UniswapX is also using a “permission required” off-chain server.

It starts as an “option” and then we all know how it ends…

Uniswap is Fake DeFi.

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— yourfriendSOMMI ❤️??? (@yourfriendSOMMI) October 14, 2023

«Uniswap — фейковый DeFi. […] Все начинается с KYC-функции для пулов ликвидности. Затем она превращается в базу данных одобренного регулятором белого списка, размещенную вне сети», — написал один из пользователей.

The so-called “hooks” are tools that allow developers to configure code without changing the core structure of the application. In Uniswap, the KYC hook is integrated into DeFi protocols to authenticate customers and assess related risks using non-fungible tokens.

A community member with the nickname TheBattlestation noted that the new feature is specific to liquidity providers and could be useful for projects that must comply with regulatory requirements in certain jurisdictions.

Earlier, Rostin Benam stated the advisability of regulating DeFi protocol activity. He compared the industry’s situation to that of an unlicensed physician.

Head of Enforcement at the SEC David Hirsch warned that the agency is examining DeFi project activity for possible violations of the law.

The whitelist function also faced criticism, but opinions in the community were divided. Some believe that without KYC in 2024 the DeFi sector will have a hard time surviving.

KYC is needed if defi is to survive in 2024

people getting too crazy with this freedom crap, time for cooler government minds to prevail

— In the 2nd millennium, there is only corn (e/aut) (@itsjustcornbro) October 15, 2023

«Люди слишком сходят с ума от этой чуши со свободой, пришло время более холодным правительственным умам одержать верх», — написал пользователь X.

An opponent advised him to get a job at “McDonald’s” if he is so concerned about freedom and privacy.

Back in July, Uniswap Labs introduced the liquidity-aggregation protocol for decentralized exchanges, UniswapX.

Subsequently, the platform developers created a crypto wallet for the Android operating system.