Oasis, a decentralized finance platform, is planning to start banning sanctioned wallet addresses from its platform. On Thursday, the Oasis Discord community said that sanctioned wallets would no longer access the DeFi platform.
Oasis set to ban sanctioned wallet addresses
Following the changes to the terms of service, wallet addresses deemed high risk will be banned from using the Oasis.app platform. These wallets will no longer use the platforms to manage positions or withdraw funds.
On the other hand, the users affected by these changes have been urged to interact directly with the protocol where their funds are held. Alternatively, they could also use another service to access these services.
One of the team members behind the Oasis.app platform has also explained the decision taken by the company. The member said that the app’s terms of service had been updated in compliance with the relevant legislation and regulations.
Your capital is at risk.
Following these regulations, Oasis will no longer grant access to the functionality of the Oasis.app to any sanctioned wallet addresses. The changing regulatory framework across different jurisdictions has created the need for crypto-based platforms to change their mode of operation.
Oasis has grown to become one of the largest DeFi platforms. In 2020, it secured $6 million in funding through a Series A funding round. Oasis provides services related to DeFi lending and borrowing.
Oasis is a protocol that has processed $4.6 billion in transactions during the past month. Moreover, it manages deposits worth around $3.42 billion. The platform has yet to provide details of how it identifies the wallets it has classified as high risk.
Changing regulatory framework on DeFi platforms
Uniswap, a leading decentralized exchange, has also announced changes to its terms of service. Uniswap has already started blocking wallet addresses linked to illegal activities through the data provided by TRM Labs.
TRM Labs is an entity that supports entities in detecting and investigating financial crime related to crypto products through an analysis of on-chain data. The feedback regarding Oasis and its ban on some wallet addresses has received backlash from the community.
One Discord user said he was interacting with the coin through an account directly linked to Tornado Cash. The user added that it could not reproduce the same issue as others because the team was likely incompetent and had applied a broad measure to enforce the new terms.