THORChain's leading exchange also updated its terms of service, introducing new blocks on countries sanctioned by the United States.
Nivesh Rustgi3 min read
Thorswap blocks sanctioned countries
In addition to blockchain illicit funds, the THORSwap team also updated its terms of service to block users from countries sanctioned by the U.S.
The protocol’s team announced that it has “partnered with an industry leader” to add the guardrails.
Uniswap, a decentralized exchange on Ethereum, uses a similar guardrail to identify financial crime. The leading DEX partnered with sleuthing firm TRM Labs in April 2022 to analyze and block transactions that are likely linked to illicit activity.
A THORSwap spokesperson told Decrypt "This brings THORSwap in parity with other leading industry DEX interfaces such as Uniswap, 1inch, Pancakeswap and more."
Some users were quick to raise concerns about the new rules, saying it contradicts the principle of decentralization.
Matt Ahlborg, a crypto researcher, replied to THORSwap saying that blanket bans are unethical because they adversely affect “hundreds of millions of innocent people.”
To which, a THORChain supporter replied that there are other applications that users from sanctioned countries can use instead of THORSwap, as it's built by “an American team” and “have to legally comply.”
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