The globally recognized decentralized exchange ‘Uniswap’ has declared the exclusion of a lot of tokens out of the interface of its application. On July 23rd, an announcement was made by Uniswap Labs, which emphasized the removal of tokens only from the interface of the application as well as the protocol is still immutable.
Uniswap Labs, through a blog post, signaled that its decision might have been influenced by the increased pressure of regulations as the company is witnessing progressive regulatory actions. It mentioned that the firm’s move is consistent with that taken by the other decentralized finance interfaces.
The delisted tokens have been excluded because of being instruments of securities by some regulators, and they comprise insurance-based tokens, options tokens, tokenized stocks, as well as synthetic assets by Synthetix and other derivatives platforms of cryptocurrency.
XAUT (Tether Gold), a Gold-backed token, is one of the targeted assets; however, Hayden Adams (the founder of Uniswap) credited buggy code for its rejection. Meme tokens such as GRUMPY (Grumpy Cat) have also been included in the blacklist of Uniswap. The supposed decentralization of Uniswap has been doubted following a severe reaction from the crypto community. ChainLinkGod and other industry observers have objected that the holders of UNI should have given the right to give their consent on the exclusions. ChainLinkGod posted on Twitter that there should be dire consequences of the decision if it has been taken without any governance vote.
Presently, Uniswap is considered as the prominent decentralized exchange in terms of its trade volume along with the v2 as well as v3 versions of the protocol, which facilitate a cumulative trade valuing over $1.45 billion during the recent 24 hours. There is increased regulatory stress on the sector of cryptocurrency all around the world. BlockFi and Binance have been undergoing the rage of the authorities in the United States as well as the United Kingdom since recently.
It has been reported earlier on 22nd July that some severe regulatory actions have been taken against BlockFi (a custody provider for cryptocurrency) through the mutual collaboration of securities boards of the three U.S. states, including New Jersey, Texas as well as Alabama. The authorities have sent the cease-and-desist letters to the firm. Vermont is said to turn out to be the fourth state which would issue the orders for BlockFi, on 25th July.