Solana-Based Orca DEX Prohibits Trade Service Use in the US
The decentralized exchange (DEX) “Orca” based on the Solana blockchain, has announced that it will no longer be able to use the “Trade” service from the United States. Although the reason for the ban has not been officially explained, the US will be added to the list of countries/regions where the use of Trade is prohibited on March 31. This announcement has caused a lot of interest in the Orca community, with some speculating that it is related to US regulations.
However, it is still possible to provide liquidity, and Orca’s smart contracts and software development kits can also be used. The banned Trade is a service that exchanges cryptocurrencies on the Orca website. As of this writing, Orca has the highest TVL (Total Value Locked) value of cryptocurrencies locked for operation on the Solana blockchain in the DEX category, with a TVL of about $46.68 million, according to data from DefiLlama.
Orca’s terms of service state that “regulations governing token-related transactions are still in development.” “If national or global laws or regulatory rules are made, they may affect the use, transmission, trading and value of tokens,” it said. It seems that trades via aggregators can still be done from the United States, as Orca’s smart contract can be used.
This news comes as regulatory development and crackdowns on cryptocurrencies have accelerated in the United States. Earlier this month, it was revealed that a revised version of the high-profile bipartisan cryptocurrency bill announced last June is set to be submitted to the U.S. Senate in mid-April. The bill focuses on establishing a new legal definition of cryptocurrencies, clarifying the role of regulators, strengthening oversight of stablecoins, and reforming the taxation of cryptocurrencies.
Furthermore, Elizabeth Rosenberg, assistant secretary of the Treasury Department’s Office of Terrorism Financing and Financial Crimes, has said she is investigating the risks of DeFi being used fraudulently. While there is interest in the legal use of DeFi, fraudsters are always looking for ways to hide their criminal activities and launder criminal proceeds, posing a threat to the cryptocurrency ecosystem. As a result, Aggregator 1inch, which provides one-stop access to DeFi, also prohibits use from the United States in its terms of service.
The ban on Orca’s Trade service from the United States has sparked interest in the Orca community, with speculation that it is related to US regulations. While trades via aggregators can still be done, regulatory crackdowns on cryptocurrencies in the US have accelerated, with a revised version of a high-profile bipartisan cryptocurrency bill set to be submitted to the US Senate in mid-April, and investigations into the risks of DeFi being used fraudulently.
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