The newly revised privacy policy of decentralized exchange (DEX) Uniswap seems to have angered some community members, who worry about the safekeeping of user data.
Some outspoken Uniswap community members have indicated the community’s suggestion that it is unusual for a decentralized business to acquire and keep information about its users in response to a blog post from November about its new privacy policy.
Around the time of FTX’s demise, Uniswap Labs published a blog post on November 11 detailing its privacy practices for collecting and storing user data.
“With innovations around blockchain, web3 aims to reclaim users’ privacy and choice after decades of internet businesses that have eroded it.”
We want to be very clear about what data we’re safeguarding and how we utilize whatever data we gather, which is why we’re introducing a new Privacy Policy today. Transparency is Key. Our users should never be taken by surprise.
According to this privacy statement, which was most recently updated on November 17, the exchange, among other things, gathers publicly accessible blockchain data, information about user devices, including information about browsers and operating systems, and information about users’ interactions with its service providers.
Furthermore, according to Uniswap, none of this data contains personally identifying data like a user’s first or last name, street address, date of birth, email address, or IP address.
Despite this, several members of the cryptocurrency community have expressed worry that the changes go counter to the industry’s fundamental principles, which are centered on user privacy and anonymity.
In a tweet on November 21 to its 83,700 followers, the developers behind the privacy-preserving cryptocurrency Firo stated that Uniswap’s privacy upgrade creates a “hazardous precedent” for DEXs:
It was noted by OwenP, an affiliate for the decentralized exchange SpookySwap, that it was unusual for a decentralized exchange to gather and keep user information on the backend.
“We were contacted […] by an infrastructure provider once who asked about our backend and what info we kept we were shocked by the question. ‘None of course’ [was] the answer.”
On November 21, Twitter user “CryptoDavid” added to his 12,000 followers on the platform that he wasn’t shocked by Uniswap’s move since other DEXs had begun to follow suit.
Following the failure of the cryptocurrency exchange FTX earlier this month, transparency has become a trendy phrase in the sector.
Kraken, Bitmex, Coinfloor, Gate.io, and HBTC, who have previously completed audits, are other cryptocurrency businesses that have lately promised: “transparency,” including establishing “proof-of-reserves” in the case of centralized exchanges.
Many other exchanges, including KuCoin, OKX, Binance, and many more, also intend to follow suit.
