With the uptick in calls for more intense regulation of cryptocurrencies, it is right to believe that crypto firms are feeling the heat.
While authorities continue to discuss the right approach towards regulating aspects of crypto such as stablecoins, crypto derivatives have faced much sterner scrutiny.
SEE ALSO: [WATCH] The U.S. Government Convenes a Meeting to Discuss Stablecoin Regulation
A derivative is a financial product whose value is linked to a characteristic of an underlying asset. Crypto futures and options are examples of derivatives that are linked to crypto assets, such as BTC or ETH.
The latest firm to be affected is Uniswap. Its parent organization Uniswap Labs recently announced that it is restricting access to tokenized stocks and derivatives through its portal.
So far, over 100 tokens have been blacklisted on the DeFi platform as regulatory concerns mount.
In a blog post, the firm indicated that the move was in response to an evolving regulatory landscape:
“We monitor the evolving regulatory landscape.
Consistent with actions taken by other DeFi interfaces, we have taken the decision to restrict access to certain tokens through app.uniswap.org.”
– UniSwap Labs
Uniswap however clarifies that it can only impose restrictions on traffic that goes through the interface service it provides, since the “Uniswap Protocol — unlike the interface — is a set of autonomous, decentralized, and immutable smart contracts.”
Binance, the market leader, continues to face continued pressure globally, much of it targeting its derivatives business. In response, the firm is looking for a financial insider CEO, given that cryptocurrencies are increasingly being viewed as financial assets.
Its CEO, Changpeng Zhao has indicated that “Cryptocurrencies are very much understood as a financial asset type, we just got to treat it as such, and we have got to run the company as such,” CZ explained during the ReDefine 2021 summit.
FTX, a growing exchange based out of Hong Kong, also does not operate in the United States yet citing the regulatory environment.
RECOMMENDED READING: U.S. to Fast Track Stablecoin Regulations and Deliver Recommendations in the ‘Coming Months’
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