Users IDEX will forced verification: the exchange has pleaded decentralizovanno

In the coming months, users of the cryptocurrency exchange International Distributed Ethereum Exchange (IDEX) will have to undergo forced account verification to comply with AML requirements and sanctions restrictions. This was stated by the Creator of the platform Aurora DAO.

According to him, IDEX will use a multi-step verification system: to work with small amounts of funds, traders need to provide basic information, and for operations with large amounts will have to go through a more complex procedure.

As a reason for the establishment of mandatory KYC procedures, Aurora DAO referred to the statement of Brian Quintens, a member of the commodity futures trading Commission (CFTC), that developers can be held liable for illegal operations carried out by third parties using smart contracts written by them.

"That is, the use of smart contracts will also fall under the requirements of user identification and anti — money laundering (KYC/AML)," he said.

Previously, IDEX contrasted these procedures with its decentralized status, but now the developers admit that they are not DEX in the usual sense of the word.

"The site can best be described as a' non-custodial ' or 'hybrid — decentralized' exchange," they explain.

However, representatives of Aurora DAO stressed that today none of the sites does not meet the criterion of" full decentralization", but the departure from the control of the authorities is fraught with inconvenience for users and will lead to a significant slowdown of the site.

It also became known that due to the tightening of regulation of the cryptocurrency sphere, the IDEX exchange will have to start blocking users from Syria, Crimea, Washington and Cuba.

Recall that since October 25, IDEX has limited the functionality for traders from the state of new York, forbidding them to place orders on the exchange. Against the background of this news, the rate of Aurora DAO AURA's own token showed a 20% decrease.