June 19, 2019, | AtoZ Markets - Decentralized exchange Bancor DEX has announced in its blog post that since July 8, 2019, US citizens, domiciliaries or users from US IPs will no longer be able to use Bancor’s web application to convert tokens. Why Bancor DEX blocks US users?
About Bancor DEX in a brief
According to the description on the official company’s website, Bancor is decentralized liquidity network which allows automatic exchange of different ERC20 and EOS tokens directly through the users’ wallets.
Bancor DEX is considered as one of the most successful ICO’s, which managed to raise around $157M in Ethereum in 2017, in under 3 hours.
Bancor DEX blocks US users due to regulatory concerns
According to the announcement, Bancor will begin blocking U.S. based IPs from accessing their network starting July 8th, 2019.
As per the announcement, the main reason behind Bancor DEX decision the increased regulatory uncertainty in the United States.
It is worth to mention that Bancor DEX blocks US users accessing the website bancor. network, but not the blockchain itself.
The company warns that the Bancor Liquidity Network is a collection of smart contracts on the blockchain, and a non-custodial system, so they cannot restrict users from accessing the blockchain itself. This cannot be blocked.
The blockchain firm informs the Bancor Wallet holders will still be able to log-in, hold tokens, and transfer tokens from the United States.
Only the convert functionality will be disabled, the Bancor DEX announcement reads. In its post, Bancor DEX explained that the new initiative would enable the Bancor community to innovate faster with better clarity.
Bancor DEX blocks US users: who is next?
By the moment there have been no comments from other prominent DEXs such as EtherDelta its plans on dealing with U.S. regulation.
Notable, that a few days ago, Binance along with the Binance DEX announced it will stop serving US individual and corporate customers on Binance website. As the media reports, the tougher rules for digital asset operators made exchange reshape its strategy on the US market.
Notable, that the decentralized exchange Binance DEX has already blocked user access from 29 countries.
The blocked countries include the US, Albania, Belarus, Bosnia, Burma, Central African Republic, Democratic Republic of Congo, Democratic People’s Republic of Korea, Côte D’Ivoire, the Crimea region of Ukraine, Croatia, Cuba, Herzegovina, Iran, Iraq, Kosovo, Lebanon, Liberia, Libya, Macedonia, Moldova, Serbia, Somalia, Sudan, South Sudan, Syria, Venezuela, Yemen, Zimbabwe. By the moment there is no clarification from the exchange regarding this move.
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