Uniswap and KYC rumors – Will KYC kill Uniswap exchange?
There is a massive FUD being spread that Uniswap decentralized exchange is getting pulled and its founders are going to jail or getting charged.
The most that will happen is that regulators will be forced to conduct KYC for their provided front end. Other front ends will pop up in response. That’s about it. Ignore the sensationalist articles being spread by other cryptocurrency websites.
Let’s admit – the law is grey for new technology; regulators are very lenient. Also, we are sure Uniswap with all their high-profile venture capitalist backers are getting top of the draw legal counsel. So, let’s not be silly.
The regulators are going for the BitMex exchange which has been a long time coming. If regulators catch on, they may require Uniswap to fork its protocol and have a function that records whitelisted KYC’d addresses and blacklist all others from interacting with it.
They may prohibit allowing support for open exchanges without this filter. It’s definitely a possibility.
If Uniswap requires KYC, will it lose its value? Well, it depends where it requires KYC. If KYC is applied only on the front end, then someone will release their front end on Arweave or competing front ends will launch. Smart contracts on Ethereum are immutable.
If they apply KYC on back end in future iterations, then yes Uniswap will have no value in future.