1inch, a decentralized exchange aggregator, has begun geofencing U.S. IP addresses as of September 29.
Although the platform’s terms of service have reportedly limited US customers since April, the ban has just lately been practical on a technological level.
“Today we’ve just added one more pop-up notification and technical layer to control this.” Sergey Maslennikov, chief communications officer of the 1inch Network, told The Block when approached for comment.
The action is intended to prepare the ground for introducing a new product in the United States. According to the spokesperson,
“The 1inch Network is in the process of collecting the Series B funding round that has now grown to $175M (instead of $70M as was planned before). A significant part of these funds will be used for the development and launch of the 1inch Pro product which is specifically designed for the US market and for global institutional investors in accordance with all the regulatory requirements.”
According to data from The Block, 1inch is the most popular DEX aggregator, contributing to over two-thirds of total volume.
The types of investments available to US consumers are limited by US laws, especially without the supply of know-your-customer information. Decentralized exchanges and aggregators, such as 1inch, frequently just need a wallet address. Although many foreign exchanges restrict access to their services in the United States (and other countries), decentralized platforms have been less likely to do so.
VPNs are well-known for making it easy to get around geofencing.
Nevertheless, the level of regulatory attention is shifting in DeFi. Prominent DEX Uniswap blocklisted a slew of tokens that mimicked securities or derivatives offers during this summer, a decision that coincided with the Securities and Exchange Commission’s increased focus on the DeFi market.