Uniswap team has announced that it will now start censoring tokens that are are potentially unfavorable to regulators. This includes synths / inverse synths, UMA protocol option tokens, Mirror protocol mirrored tokens, Opyn insurance tokens, gold Tether and other tokens.
It shall be noted that Uniswap’s the official frontend that is censoring access to these tokens, the on-chain protocol itself is fully permission-less and can support any Ethereum ERC20 at a protocol level.
Hopefully, we see more adoption of censorship-resistant front-ends as a result of this. You can find complete list of unsupported Ethereum ERC20 token at their official github list.
What does this mean for end users and developers thinking of listing on Uniswap exchange? This means that Unsiwap is no longer a true decentralized exchange. Yes, the contract of Uniswap is decentralized and in theory, one can still trade any token without an issue but the UI that is used by 99.99% of its users, will be denied access to tokens that are not liked by their team.