Uniswap Labs Restricts Access to Some Tokenized Stocks and Derivatives on Protocol Interface

Sahaj  |  Jul 24, 2021

Uniswap Labs, the software development studio, revealed in a blog posting on Friday that it is restricting access to some tokens involving tokenized stocks and derivatives on its supporting protocol interface. The news came after the announcement by the regulators of the United States that they are going to increasingly watch out for these types of products.

Uniswap Labs Restricts Access to Tokenized Stocks and Derivatives

While explaining the decision of restricting the tokens following the announcement made by the US regulators, they mentioned the evolving regulatory scenario. The blog entry said:

“Consistent with actions taken by other Defi interfaces, we have taken the decision to restrict access to certain tokens through app.uniswap.org.”

Along with this, other crypto firms have canceled their tokenized stock products in recent weeks, and one such example is Binance. Though it should be noticed that Uniswap, unlike Binance, is a decentralized exchange and it is restricting access through its own interface. 

Gary Gensler, the Chairperson of the Securities and Exchange Commission said in a speech on Tuesday in front of the Bar Association that stock tokens on both centralized and decentralized platforms are required to be registered with the regulator.

Limited Access to over 100 Tokens

As stated by the Uniswap Labs, the statement read:

“Today, consistent with actions taken by other Defi interfaces, we have taken the decision to restrict access to certain tokens through app.uniswap.org. Importantly, the Uniswap Protocol — unlike the interface — is a set of autonomous, decentralized, and immutable smart contracts. It provides unrestricted access to anyone with an Internet connection."

The SEC and CFTC have similarly led authoritative incursions into the token market and have targetted certain asset classes for possible fraud and illegal activities.

The Github repository has the list of all the tokens that are now going to become unsupported on the Uniswap web app and it was published by the Uniswap Labs. 

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