KYC hook for Uniswap v4 stirs community controversy

A brand-new hook available on an open-source directory site for Uniswap V4 hooks is sparking controversy within the crypto neighborhood. The hook makes it possible for users to be inspected for Know Your Customer (KYC) before they can trade on a pool.Criticizing the hook, a user at X (formerly Twitter) kept in mind that the hook opens up the possibility of decentralized financing protocols being whitelisted by regulators:” As I explained in all my posts for the past year: It starts with “kyc option” for LPs. And after that ultimately it moves into a “regulator whitelist authorized” database hosted offchain. And then non-kyc gets identified as unlawful terrorist money laundering. Stop simping for soyboys.” Essentially, a hook is a tool that allows designers to tailor a code without changing the main structure of the program. In Uniswap V4, this hook will allow developers to use KYC verification within the decentralized finance protocol. Monetary organizations utilize KYC treatments to confirm customer identities and assess involved dangers. A main goal of KYC is to find cash laundering and terrorist funding activities. KYC hook code available on GitHub. Source: GitHubThe KYC hook was rolled out by a neighborhood designer on Uniswap V4s directory site as an opt-in functionality. The KYC confirmation is carried out by a nonfungible token (NFT). According to another X user, the hook specifies for liquidity suppliers and might be beneficial for jobs that need to adhere to regulative requirements in certain jurisdictions:” Seems like you dont comprehend how this works. # 1 its lp particular. Some tasks might desire to run within the legal confines of jurisdiction. # 2 hooks can be made by neighborhood devs. Youre trashing something that has done more than anybody else for “real defi”.” Governments around the world are taking a closer look at DeFi protocols and transactions. Recently, the group of twenty worlds biggest economies, G20, accepted a crypto regulative roadmap proposed by the International Monetary Fund (IMF) and the Financial Stability Board (FSB) tightening crypto guidelines. Uniswap V4 introduces customizable hooks and is expected to be readily available in early 2024, with access restricted to governance-approved entities.Magazine: Recursive inscriptions– Bitcoin supercomputer and BTC DeFi coming soon

A brand-new hook readily available on an open-source directory for Uniswap V4 hooks is sparking debate within the crypto community. The hook allows users to be checked for Know Your Customer (KYC) before they can trade on a pool.Criticizing the hook, a user at X (previously Twitter) noted that the hook opens up the possibility of decentralized finance procedures being whitelisted by regulators:” As I discussed in all my posts for the previous year: It starts with “kyc option” for LPs. In Uniswap V4, this hook will permit designers to utilize KYC verification within the decentralized finance protocol.