Synthetic tokens and tokenized stocks have made it onto Uniswap Labs’ black list as regulatory concerns mount.
The world’s leading decentralized exchange, Uniswap, has announced the delisting of a number of tokens from its app interface.
Uniswap Labs made the announcement on July 23, emphasizing that the tokens had been removed from the app interface only, and that the protocol remains immutable:
“These
changes pertain to the interface at app.uniswap.org — the Protocol
remains entirely autonomous, immutable, and permissionless.”
The
company Uniswap Labs is the software developer that has built the
front-end web app portal. The front-end is separate from the Uniswap
protocol itself, which is autonomous code that was released as a public
good.
In the blog post, Uniswap Labs hinted that increased
regulatory pressure may have influenced its decision, stating: “we
monitor the evolving regulatory landscape.” The company also described
the move as “consistent with actions taken by other DeFi interfaces.”
The tokens
that have been delisted from the platform’s interface include
instruments that may be at risk of being classified as securities by a
regulator, including tokenized stocks, options tokens, insurance-based
tokens, and synthetic assets from crypto derivatives platforms like
Synthetix.
Gold-backed token, Tether Gold (XAUT), is among the assets targeted, however, Uniswap founder Hayden Adams attributed
XAUT’s removal to buggy code. Meme-themed tokens including Grumpy Cat
(GRUMPY) had also found their way onto Uniswap’s blacklist.
The
reaction from the crypto community saw Uniswap’s purported
decentralization called into question. Industry observers such as
‘ChainLinkGod’ asked why UNI holders did not get to vote on the delistings, tweeting:
“Not
very informative here. Was this decision made through governance vote?
If not, this opens a whole can of worms and sets a terrible precedent.”
Uniswap
is currently the leading decentralized exchange by trade volume, with
the protocol’s v2 and v3 versions facilitating a combined $1.45 billion
worth of trade in the past 24 hours.
Related: Concern as Uniswap-backed 'DeFi Education Fund' dumps $10M worth of UNI
Regulatory
pressure on the crypto sector is mounting across the globe, with
Binance and BlockFi recently incurring the wrath of authorities in the
U.K. and U.S. respectively.
As reported by Cointelegraph on July
22, the Texas State Securities Board has joined its counterparts in New
Jersey and Alabama in taking action against the crypto lending platform. Vermont has become the fourth state to issue an order against BlockFi, on July 25.
source link : https://cointelegraph.com/news/uniswap-delists-100-tokens-from-interface-including-options-and-indexes
