March 23, 2023

Uniswap newly released privacy policy comes in light of the FTX crisis, an event that has shined a spotlight on the need for transparency. 4094 Total views 12 Total shares Listen to article 0:00 News Decentralized exchange (DEX) Uniswap recently updated privacy policy appears to have attracted the ire of some members of the community, with concerns that collecting and storing user data works against cryptos core values.

In recent responses to a Novemberblog post regarding its updated privacy policy, some vocal members of the community suggested it is uncharacteristic for a decentralized entity to collect and store information about its users.

In the Nov. 11 post from Uniswap Labs, released around the time of FTXs collapse, the decentralized exchange released its privacy policy to explain how it collected and stored user data:With innovations around blockchain, web3 aims to reclaim users privacy and choice after decades of internet businesses that have eroded it.

Thats why were releasing a new Privacy Policy today we want to be crystal clear about what data were protecting and how we use any data we collect. Transparency is key. We never want our users to be surprised, it said.

This privacy policy, which was last updated on Nov. 17, reveals that the exchange collects publicly-available blockchain data, information about user devices such as browser information, operating systems and information about users interactions with its service providers, among others.

Uniswap also stated that none of this information includes personally identifiable information such as first name, last name, street address, date of birth, email address or IP address.

Despite this, some in the crypto community have shared concerns that the moves are in contrast to crypto’s core values, which are focused on user privacy and anonymity.

The team behind privacy-preserving cryptocurrency Firo argued in a Nov. 21 Twitter post to its 83,700 followers that Uniswaps privacy update sets a dangerous precedent for DEXs:

While we have the utmost respect in what @Uniswap has built, we strongly reject the incorporation of data collection to track user behaviour and onchain activity. This sets a dangerous precedent for DEXes. Firo $FIRO (@firoorg) November 21, 2022

OwenP, an affiliate for the DEX SpookySwap suggested that it was uncharacteristic for a decentralized exchange to collect and store user information on the backend.

We were contacted […] by an infrastructure provider once who asked about our backend and what info we kept we were shocked by the question. None of course [was] the answer.

Meanwhile, Twitter user CryptoDavid also noted to his 12,000 Twitter followers on Nov. 21 that he wasnt surprised by Uniswaps decision, as other DEXs have also started doing the same thing.

Related: Digital sovereignty: Reclaiming your private data in Web3

Transparency has emerged as a buzzword in the industry following the collapse of crypto exchange FTX earlier this month.

Other crypto entities that have recently pledged toward transparency, including implementing proof of reservesin the case of centralized exchanges, include Kraken, Bitmex, Coinfloor, and HBTC, whove already completed audits.

Binance, OKX, KuCoin and a host of other exchanges also plan on doing the same. #Blockchain #Altcoin #Business #Privacy #Adoption #Transparency #Decentralized Exchange #Data #Uniswap #FTX #Regulation Related News FTX showed the value of using DeFi platforms instead of gatekeepers CZ and Saylor urge for crypto self-custody amid increasing uncertainty FTX collapse could see crypto sector layoffs accelerate Circles USDC issuance falls 3 billion from Binance stablecoin conversions Esports team TSM suspends $210M sponsorship deal with FTX

Leave a Reply

Your email address will not be published. Required fields are marked *