Uniswap, a decentralized exchange, has censored 129 tokens from their main interface. Users can still access them through the protocol.
Uniswap, a decentralized cryptocurrency exchange (DEX), has announced through a blog post on July 23, citing it will restrict access to 129 tokens through their main user interface app.uniswap.org.
The blog post does not provide a clear explanation of the types of 129 tokens it has restricted. But it is clear to say some of the tokens were of tokenized stocks and derivatives in nature. The blog cited that the tokens were a small representation of overall volumes in trading stating:
“Today, consistent with actions taken by other DeFi interfaces, we have taken the decision to restrict access to certain tokens through app.uniswap.org. These tokens have always represented a very small portion of overall volume on the Uniswap Protocol.”
The restriction to access these tokens stems from the Uniswap User Interface. But, the restrictions can be looped over by accessing the tokens through token contracts. A Twitter user, @banteg has noted that all UMA, Synthetix, Mirror, and Opyn tokens are affected.
It should be noted that the Uniswap Protocol is still decentralized, and a few crafty Twitter users have found ways to bypass the user interface restriction and access the blacklisted tokens via the blockchain.
The move comes days after financial and regulatory bodies have said to increase scrutiny on DeFi products, synthetic stocks, and derivatives.
Similarly, other cryptocurrency service providers have canceled their tokenized stocks, debit, credit, and derivatives products. Recently, Binance delisted Blockmason Credit Protocol, CyberMiles, Time new Bank, and VIBE.
Binance is a centralized cryptocurrency exchange, decentralized exchanges, in this case, Uniswap can delist coins on the main user interface, but can be accessed through the blockchain protocol.
Other major DEX platforms may follow suit to delist tokens. Although backdoors can be used to access delisted tokens on Uniswap, many lack the technical know-how and are unable to interact with the tokens.