Decentralized Exchange, IDEX Finally Implements KYC/AML Policies
According to a recent IDEX Medium post, it has been revealed that the first ever Ethereum-based, decentralized exchange will be implementing the Know-Your-Customer (KYC) and Anti-Money Laundering (AML) Policies.
This is something most exchanges have already implemented, nonetheless, the fact that IDEX has also done so is great news. As for why the team did so has been reasoned out as solely for “complying with sanctions and money laundering laws.”
News outlet, News.Bitcoin.com, who also reported on this matter trusts that the community of investors will be attentive of whether IDEX’s new improvement is a team decision or “the shape of things to come.” Furthermore, it has been hinted out that it is important to observe IDEX’s dominant position within the market of decentralized exchanges because if it is supports over seven times the trading value, then it is a player to watch even more closely.
The enactment of KYC/AML policies aren’t the only new alterations that the team will be executing, as the Medium post revealed that access to NY IP addresses will be blocked. An in-depth look at how the notion of “decentralization” works has also been provided and this is what was shared in relation to it:
“The reality is that decentralization exists on a complicated, multi-faceted spectrum. However, many view the concept with absolutism. In turn, a degradation of discourse has arisen, making the word ‘decentralized’ all but meaningless.… The community should describe projects by their product attributes that arise due to some often-imprecise levels of decentralization.”
Returning to the exchange’s plans for KYC integration, it has been disclosed that it will be an ongoing process in which tiers will be set as to how much funds can be transferred through IDEX. Precisely,
“Those trading a small amount of funds will be required to provide a minimal amount of information, while those who wish to trade larger amounts will need to undergo additional KYC steps.”
To learn more about IDEX’s goals, check out: https://medium.com/aurora-dao/pragmatic-decentralization-how-idex-will-approach-industry-regulations-8b109212128a