Ethereum may Face Legislative Restrictions due to OFAC Compliance

The Office of Foreign Assets Control has created new compliance criteria for Ethereum blocks. The protocol censorship can be a hindrance to the decentralized blockchain network. To this end, around 74% of the Ethereum network has found OFAC-compliant blocks in the last 24 hours.

Ethereum community is plagued with increasing demands for censorship after only 51% of OFAC compliance was completed. On the other hand, mevWatch data claims that the OFAC compliance for Ethereum blocks daily has increased to 73%.

The researchers from MEV-boost have told the media that OFAC compliance is going to file Ethereum transactions. In this manner, the neutrality of the network will increase, and questionable transactions could be censored.

The government has found a way to subject the DeFi ecosystem to become compliant with state regulations and share their data with regulated financial agencies.

Meanwhile, MEV-Booster also has the option to slow down the rate of compliance by discarding relays in the configuration. Some of these relays are namely BloxRoute, Manifold, BloXroute Ethical, and Relayooor, among others.

Via OFAC, US regulators can make sure compliance with the economic and trade sanctions. Before all this happened, the same agency was conducting an audit of Tornado Cash and some other Ethereum addresses.

OFAC’s Screening Process

Ethereum network has recently set a new record of shorting ETH by $500 million, wiped out from the network within two working days. Meanwhile, Bitcoin adoption has started to expand into mainstream markets; thus, the prices are appreciating once again.

Ethereum price movement was appreciated following the UnionBank partnership. UnionBank is the largest bank in the Philippines, and it has also initiated a cryptocurrency trading record that is partnering with Metaco, a Swiss cryptocurrency organization.

Meanwhile, the Ethereum holders have questioned the ongoing process of financial audits that can discard the differences between the decentralized and centralized financial networks.

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