THE DECENTRALIZATION OF CRYPTOCURRENCIES IS QUESTIONED BY THE SEC

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Description

The SEC or US Securities Exchange Commission began an investigation into the decentralization of operations carried out with cryptocurrencies through Uniswap.

This platform is being monitored by the legal department of the SEC to have a clearer understanding of the functioning and operation regarding the exchange of cryptocurrencies on said platform.

The interest in observing this DeFi system arose after the news was released about an agreement between the SEC and an organization dedicated to studying blockchain technology to be more arbitrary in the decentralized exchange carried out on this platform. If you want more information regarding these complications, then you can check out Bitcoin Revolution.

The SEC, together with the collaboration of a Chinese company known as AnChain, will be the one destined for verifying and controlling all the existing platforms dedicated to financial operations.

Under the pressure that Uniswap has on the part of the SEC, it was forced to agree to comply with the legal regulations by which its way of operating as an exchange platform should be directed financially.

Uniswap investigative process

According to some advisors, these investigative processes do not alarm anyone since their main objective is to verify that the exchange platforms are operating as they should under the corresponding regulations.

It should be clear that when conducting this investigation, it is not because of errors; on the contrary, it is to gather the information that can be used to operate as well as possible and avoid failures in DeFi systems.

This collection of information by the SEC is to verify how the exchange environments behave and to specify if failures have occurred and how to avoid them.

In general, the SEC takes the initiative to carry out these investigations; concerned about the rapid momentum decentralized operations are gaining worldwide, where the Uniswap platform is the most prominent of the DeFi platforms.

Nonconformity of Uniswap users is present.

Many users of this platform, seeing the process going through being monitored by the SEC, expressed their dissatisfaction with it since it is losing its most unique attraction, which is being able to carry out transactions free of any control imposed by some entity.

Many influential people and active users of different exchange platforms, such as Bit2me, expressed their disagreement with these investigations into the DeFi system, considering them as a strategy to attack exchange platforms and cryptocurrencies.

Others assume that Uniswap should take action on the matter. One way to stop this aggression could be to block the account of a US citizen on the platform as a measure of pressure.

Such enforcement should not be allowed for fear of being removed from web browsers. If your primary address were to be blocked, there are other alternatives to access the Uniswap platform.

The platform bans some tokens.

This platform currently has restrictions on some tokens, which cannot be admitted in its exchange environment, further corroborating its decentralization.

Clarifying that this measure is only through the website, that the codes are always free, and that any token can be part of them at any time.

This strategy is used based on the financial measures currently proposed by FATF, based on the cryptographic markets, which, added to the controls by the SEC, have increased the tension in said market.

Conclusion

All this proposed regulatory system is difficult to fully implement since it would be considered a scam by cryptocurrencies to allow one of its advantages to be eliminated with greater acceptability, such as decentralization.

These DeFi systems are characterized by carrying out exchanges and transactions without regulatory entities of any kind, an aspect for which users are not willing to let go and accept the impositions of the SEC and FATF.

The exchange platforms have expressed their support for Uniswap to maintain decentralization in its operations, security, and confidentiality strategy that has characterized them since its inception.

Cryptocurrencies were created to achieve financial freedom. However, due to their significant operation in the world market, they have suffered severe threats of control and regulation by government, financial and private entities.

The cryptographic markets will never be fully controlled since their nature is to function under the free decision of the users without the intervention of a third party that imposes laws and regulations that cause disadvantages to the free management of capital invested in digital markets already accepted at the level world.

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