Decentralised exchange (DEX) liquidity aggregator 1inch has started blocking US users' access based on IP addresses. The company's communications director, Sergey Maslennikov, told The Block that the project is preparing the ground for a new product launch in the US.
The rules for using the platform restricted participation of customers from the United States back in April, but only now have been implemented at the technical level.
According to Maslennikov, 1inch has added "another pop-up notice and an appropriate technical layer to control".
"1inch Network is in the process of raising funds as part of the Series B funding round, which has been expanded to $175m (previously planned at $70m). A significant portion of these funds will be used to develop and launch the 1inch Pro product, built specifically for the US market and global institutional investors in compliance with all regulatory requirements," he said.
1inch is the largest liquidity aggregator with DEX. In September, users of the platform transacted a combined volume of more than $7bn. At its peak in May 2021, the figure was as high as $9.8bn.
Some centralised exchanges like Binance have long banned US customers from accessing international platforms and have launched separate divisions for the US market.
DeFi players are also having to adapt to the changing regulatory landscape. Uniswap Labs, for example, stopped exchanging 129 tokens in its interface in July.
Recall that in August, SEC Chairman Gary Gensler warned of increased regulation of DeFi and stressed that the decentralised nature of projects does not give immunity from the agency's oversight.
In early September, he called users of DeFi platforms "vulnerable". Gensler said that this segment was "rife with fraud, scams and abuse".
The media later reported that the SEC was investigating a number of companies in the segment, including Uniswap Labs.