Ethereum OFAC compliance dips to 45% post-Merge upgrade

In early August 2022, OFAC approved Tornado Cash and numerous Ether (ETH) addresses associated with it due to its capability to mask and anonymize transactions.Before the Merge upgrade, Ethereums OFAC compliance increased significantly as entities such as crypto exchanges decided to run censoring MEV-Boost relays on their validators. Not all systems adhere to OFAC compliance, according to MEV Watch:” Of the 7 readily available significant relays just 3 do not censor according to OFAC compliance requirements.” It is likewise important to keep in mind that not all blocks developed by OFAC-compliant relays are censoring; nevertheless, all blocks constructed by OFAC-compliant relays will censor when non-compliant deals are broadcast to the network.While OFAC guidelines mostly target United States-based organizations, validators outside the U.S. must think about running non-censoring relays for the advantage of the network.Related: US Treasury sanctions Ethereum wallet tied to cartel over illegal fentanyl trafficking Amid Ethereums decreased OFAC compliance, Grayscale made the choice to abandon all the rights to PoW Ethereum tokens (ETHPoW).

In early August 2022, OFAC sanctioned Tornado Cash and a number of Ether (ETH) addresses associated with it due to its ability to mask and anonymize transactions.Before the Merge upgrade, Ethereums OFAC compliance increased significantly as entities such as crypto exchanges opted to run censoring MEV-Boost relays on their validators. Not all systems adhere to OFAC compliance, according to MEV Watch:” Of the 7 readily available significant relays only 3 do not censor according to OFAC compliance requirements.” It is likewise crucial to note that not all blocks developed by OFAC-compliant relays are censoring; nevertheless, all blocks built by OFAC-compliant relays will censor when non-compliant transactions are broadcast to the network.While OFAC policies mainly target United States-based organizations, validators outside the U.S. should consider running non-censoring relays for the advantage of the network.Related: US Treasury sanctions Ethereum wallet connected to cartel over illegal fentanyl trafficking Amid Ethereums reduced OFAC compliance, Grayscale made the decision to desert all the rights to PoW Ethereum tokens (ETHPoW).