Several reports have stated that from March 9, PancakeSwap, a popular decentralized exchange (DEX), will start blocking Iranian users. The report was first published by CryptoClub, a Persian-speaking cryptocurrency community that circulated a message from the DEX talking about this ban.

PancakeSwap is the leading DEX on Binance Smart Chain, dominating a third of BSC’s total value locked.

A tweet from CryptoClub showed a message from PancakeSwap saying that it will start blocking the IP addresses of users from Iran and other jurisdictions. The other countries involved in this ban include Belarus, Crimea, Cuba, Iraq, North Korea, Sudan, Syria, The Democratic Republic of Congo and Zimbabwe.

Decentralized exchanges rarely geofence users. However, in recent months, DEXs have started geofencing techniques mainly popular on centralized exchanges. 1inch, a DEX aggregator, blocks the IP addresses of users from the United States.

This announcement elicited mixed reactions from users, with one saying that “it is definitely a form of discrimination, and they are discriminating against an entire nation. I hope the community will come together to act.”

For the longest time, the decentralized finance (DeFi) sector has managed to run without the interference of regulations. However, the global regulatory landscape is changing, and these platforms are being forced to comply to ensure their businesses continue to run smoothly.

The geo-blocking of users from Iran and the countries mentioned above could be because PancakeSwap does not want to violate the sanctions imposed against Iran. To comply, the DEX has to ensure its users are not under sanction from the government.

One of the largest DeFi players, Uniswap (UNI/USD), has also been forced to delist some of its tokens amidst the heightened talks about DeFi regulations. Last year, the SEC chair, Gary Gensler, talked about the need for regulation in the booming DeFi sector.

However, users can often bypass these restrictions by using virtual private networks (VPNs). In October last year, the Office of Foreign Asset Control (OFAC) under the US Treasury urged crypto businesses to monitor VPN usage.

The post PancakeSwap DEX set to ban Iranian users appeared first on Invezz.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

394 +