Published: 25.04.2022
Article reading time:
2 minutes.
The decentralized exchange dYdX has been criticized for several days in a row by users and media people in the crypto industry for stopping servicing some users.
Site client under the nickname Banteg reported April 25 on Twitter that his account on the dYdX site was blocked. The user believes that the blocking was unintentional. However, the platform did not comment on the restriction of access to the user account.
An exchange user, who wished to remain anonymous, posted on the dYdX forum about the same issue, stating that he received a message: “you are a resident of a jurisdiction or trading from a jurisdiction that violates the terms of use of dYdX.” The exchange did not comment on this issue. The forum post was posted on April 23rd.
The CEO of the Starkware ecosystem, Louis Guthmann, said it was “very strange” how a Banteg user got banned and why he couldn’t withdraw assets quickly. The CEO added that he is in close contact with Banteg and the situation has not changed in any way, his account is still blocked, and the exchange did not disclose the reason for blocking the account, despite numerous requests.
The crypto community criticizes the exchange for its apparent lack of decentralization. At the same time, what is happening is not entirely clear, but the fact that user accounts can be blocked without warning was enough to raise a fuss around the problem.
The idea of blocking users by jurisdiction is something that centralized exchanges stick to. Regulators seek to ensure that the cryptocurrency does not work in specific regions – for example, in Russia, Iran, North Korea. Decentralized exchanges serve as one of the exits for users of these countries to the cryptocurrency market.
Regulators are increasingly turning their attention to decentralized platforms, although they acknowledge that it is difficult to implement oversight.
In March, a group of Colombian users sued Binance for a lengthy suspension of their accounts. The accounts were blocked in September last year by decision of the Dutch Fiscal Information and Investigation Service (FIOD).
Source: Bits
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