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?
The article was updated on 20 November, 2019 by Amicus.
19 June, 2019, | AtoZ Markets – 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 one of the most successful ICO’s. That also 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’s 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 also 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.
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 remain disable, the Bancor DEX announcement reads. The new initiative would also enable the Bancor community to innovate faster with better clarity.
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.
Yet, a few days ago, Binance, along with the Binance DEX, announced it would stop serving US individual and corporate customers on the Binance website. As the media reports, the tougher rules for digital asset operators made exchange reshape its strategy on the US market.
Nevertheless, the decentralized exchange Binance DEX has already blocked user access from 29 countries. By the moment, there is no clarification from the exchange regarding this move. The blocked countries include:
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
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