Prepare for KYC Checks in Your Preferred Uniswap Pool in the Near Future

Crypto News– Uniswap’s forthcoming upgrade, set to launch later this year, has introduced a collaborative approach by welcoming code suggestions from the community. However, not all of these suggestions have garnered unanimous enthusiasm.

Prepare for KYC Checks in Your Preferred Uniswap Pool in the Near Future

A notable point of contention revolves around community-proposed code related to Know Your Customer (KYC) and whitelisting features. These proposals have ignited a passionate debate concerning the future of the decentralized finance (DeFi) ecosystem. KYC checks and address whitelisting mechanisms are tools designed to combat illicit activities and ensure compliance with international sanctions through online identity verification processes.

These concepts are part of Uniswap’s innovative “Hooks” feature, which empowers third-party developers to put forth various alterations and enhancements for the world’s largest decentralized exchange.

One code submission, crafted by blockchain developer Jongwon Park, introduces KYC checks as a prerequisite for users looking to engage in trading on a given pool. This particular code has become the focal point of the controversy, drawing attention from prominent DeFi investor and analyst Adam Cochran. Cochran expressed concerns about it, describing it as a “slippery slope” for the protocol. He articulated that enabling tools for permission systems may provide regulators with grounds to advocate for their utilization in situations where they might not be necessary.