Decentralization supporters are outraged by Uniswap new privacy policy.

by Nov 22, 2022CryptoNews0 comments

Uniswap has a new privacy policy in response to the FTX issue, which has highlighted the need for openness.

The newly amended privacy policy of decentralized exchange (DEX) Uniswap appears to have enraged certain members of the community, who are concerned that collecting and keeping user data goes against crypto’s basic beliefs.

In recent reactions to a November blog post announcing its amended privacy policy, some outspoken members of the community stated that collecting and storing information about its users is unbecoming of a decentralized business.

The decentralized exchange posted its privacy policy to describe how it gathered and kept user data in a Nov. 11 article from Uniswap Labs, issued around the time of FTX’s collapse:

“With innovations around blockchain, web3 aims to reclaim users’ privacy and choice after decades of internet businesses that have eroded it.”

“That’s why we’re announcing a new Privacy Policy today – we want to be upfront about what data we’re safeguarding and how we utilize any data we gather.” Transparency is essential. “We never want our users to be startled,” the company stated.

The exchange gathers publicly accessible blockchain data, information about user devices like as browser information, operating systems, and information about users’ contacts with its service providers, among other things, according to its privacy policy, which was last updated on November 17.

Uniswap further noted that no personally identifiable information such as first name, last name, street address, date of birth, email address, or IP address is included in this data.

Despite this, some members of the crypto community have expressed worry that the developments go against crypto’s primary ideals, which are centered on user privacy and anonymity.

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In a Nov. 21 Twitter tweet to its 83,700 followers, the developers behind the privacy-preserving cryptocurrency Firo stated that Uniswap’s privacy upgrade sets a “hazardous precedent” for DEXs:

OwenP, an affiliate for the DEX SpookySwap, said that collecting and storing user information on the backend was unusual for a decentralized exchange.

“We were called […] by an infrastructure supplier who inquired about our backend and what information we maintained; we were taken aback by the query.” ‘Of course not,’ was the response.”

Meanwhile, Twitter user CryptoDavid told his 12,000 followers on Nov. 21 that Uniswap’s action didn’t surprise him because other DEXs have started doing the same thing.

Following the bankruptcy of crypto exchange FTX earlier this month, transparency has emerged as a term in the sector.

Kraken, Bitmex, Coinfloor, Gate.io, and HBTC are among the other crypto companies that have lately vowed to “transparency,” including adopting proof of reserves in the event of centralized exchanges.

Binance, OKX, KuCoin, and a slew of other exchanges want to follow suit.

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