Limit trade services
DEX (decentralized exchange) “Orca” based on the blockchain of cryptocurrency (virtual currency) Solana (SOL) announced on the 16th that it will not be able to use the “Trade” service from the United States.
On the 31st of this month, the US will be added to the list of countries/regions where the use of Trade is prohibited, but the reason for the ban has not been explained. On the other hand, liquidity can be provided, and Orca’s smart contracts and software development kits can also be used.
What is DEX
Abbreviation for “Decentralized Exchange”. Assets are traded without a central administrator.
connection: What is DEX | Detailed explanation of the decentralized exchange with a market capitalization of over $23 billion
Banned Trade is a service that exchanges virtual currencies on the Orca website. Since no official announcement has been made about the usage restrictions this time, there is a lot of interest on Discord. Some in the community speculated that it was related to US regulations.
According to data from DefiLlama, Orca has the highest TVL (Total Value Locked) value of cryptocurrencies locked for operation on the Solana blockchain in the DEX category. As of this writing, TVL is about ¥6.2 billion ($46.68 million).
Since it is explained that Orca’s smart contract can be used, it seems that trades via aggregators can also be done from the United States.
connection: What is DeFi (decentralized finance) | A thorough explanation of the advantages and disadvantages that even beginners can understand
Orca’s terms of service state that “regulations governing token-related transactions are still in development.” “If national or global laws or regulatory rules are made, they may affect the use, transmission, trading and value of tokens,” it said.
It is true that in the United States recently, regulatory development and crackdowns have accelerated. Earlier this month, it was revealed that a revised version of the high-profile bipartisan cryptocurrency bill announced last June will be introduced to the U.S. Senate in mid-April.
The bill focused on establishing a new legal definition of cryptocurrencies, clarifying the role of regulators, strengthening oversight of stablecoins, and reforming the taxation of cryptocurrencies, but has yet to pass. .
connection: U.S. lawmaker plans to release revised version of comprehensive “virtual currency bill” in April
Also on Tuesday, Elizabeth Rosenberg, Assistant Secretary of the Treasury Department’s Office of Terrorism Financing and Financial Crimes, said she was investigating the risks of fraudulent use of DeFi.
While there is interest in the legal use of DeFi, fraudsters are always looking for ways to hide their criminal activities and launder criminal proceeds, and this has implications for DeFi and others. It also poses a threat to the cryptocurrency ecosystem, he said.
connectionUS Treasury investigating risk of DeFi being used for illicit finance
Aggregator 1inch, which provides one-stop access to DeFi, also prohibits use from the United States in its terms of service.