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How Uniswap Will Block Wallets Connected To “Clearly Illegal” Activities

Uniswap Labs is the company that created the famous Automated Market Generator (AMM). It has just published a statement in which it announces an update to its policy of blocking wallets from accessing the decentralized application (dApp). According to this release, the Uniswap front-end will be inaccessible to users associated with criminal activity.


How Uniswap Will Block Wallets Connected To “Clearly Illegal” Activities

A mission based on a partnership with TRM Labs

The company has partnered with a firm specializing in digital asset risk and compliance , TRM Labs , which will help it identify wallets that can be found to have a high likelihood of being linked to criminal activity. . Specifically, the company will block addresses related to any of the following: human trafficking and child sexual abuse material, terrorist financing, various state sanctions, hacked funds or stolen, ransomware.

TRM Labs has technical tools capable of identifying these wallets.

According to the press release, these include a system for viewing a " comprehensive risk profile " for addresses, entities, and even wallets.

TRM Labs also has the ability to trace the flow of funds “ on 23 different blockchains and 900,000 assets ” .

Uniswap Labs officials explain the reason they decided to choose such a policy: " We remain committed to developing products in a way that provides a safe, transparent and robust financial infrastructure that can empower users around the world. ".

But what about cases where people might have their wallets blocked even though they haven't done anything criminal. For those, Uniswap recommends “ emailing compliance@uniswap.org to inquire about how to get your wallet address unblocked. »


Uniswap wants to give credibility to the cryptocurrency ecosystem

If Uniswap, which has already been sued by a user of its platforms, is taking all these measures, it is because the DeFi sector has been in the limelight for some time. In the United States and elsewhere in the world, political actors believe that the sector, which is not regulated, serves as a platform for criminal activities.

Today, there are many exchanges and companies in the cryptocurrency sector that are taking measures to block, for example, people placed under sanctions in the context of the conflict between Russia and Ukraine, and to prevent them from “ laundering” . their funds through their platforms. »

In addition, Uniswap has also taken all these measures because of the resurgence of cyberattacks targeting entities specializing in cryptocurrency. One of the most popular of these attacks is when hackers managed to extract $600 million from Axie Infinity, the popular NFT-based game.

Uniswap partner TRM Labs has collaborated with the Center for a New American Security (CNAS) on a report that identifies the Lazarus Group, a group of North Korean hackers who carried out attacks against crypto-entities.

Ultimately, the increase in attacks in the cryptocurrency ecosystem, the ever present risk that people use cryptocurrencies to circumvent economic sanctions justified these measures that are taken by Uniswap. The challenge, however, will be to ensure that errors are minimized so as not to block the accounts of innocent and irreproachable people.


Source : bitcoinist.com

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