Top Decentralized Trader IDEX to Ban NY Users, Community Shocked

  • Yuri Molchan
    📰 News

    Aurora’s IDEX to follow US regulation rules

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On Tuesday, the decentralized exchange IDEX posted a tweet, stating that as of Oct. 25 it will prohibit users from New York to trade through the dex.

IDEX is the number one decentralized exchange by trading volumes, daily users and the number of transactions.

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The prohibition explained

As IDEX told U.Today exclusively, this is due to:

“BitLicense regulation that has been in place since 2014. IDEX is not compliant with the BitLicense and cannot offer services to NY users.”

In the IDEX whitepaper, the exchange is described as:

“a hybrid, semi-decentralized exchange that provides a trustless, real-time, high-throughput trading experience in conjunction with Blockchain based settlement.”

This seems to be a correct adjustment since IDEX is positioned as a decentralized exchange. This is what the numerous comments under the tweet were about. Users in Twitter are insisting that the word ‘decentralized’ should be removed from the company’s title.

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Complying with regulatory rules

The BitLicense the IDEX rep was referring to is basically a license that any company in the crypto area working in New York must obtain from the NY Department of Financial Services (NYDFS). Same is applied to companies providing services to NY citizens.

 

About IDEX

IDEX is founded by the Aurora crypto platform, Aurora DAO is one of the dex’s basic coins. It operates on Snowglobe, a fully decentralized exchange protocol.



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About the author

Yuri is a journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future. ‘Hodls’ cryptocurrencies. Has written for several crypto media. Currently is a news writer at U.Today.

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