Decentralized financial platform Oasis plans to start banning sanctioned wallet addresses from its platform. On Thursday, the Oasis Discord community said that sanctioned wallets will no longer access the DeFi platform.
Oasis is set to ban sanctioned wallet addresses.
Following changes to the Terms of Service, high-risk wallet addresses will be banned from using the Oasis.app platform. These wallets do not use the platforms to manage positions or withdraw funds.
On the other hand, users affected by these changes are urged to connect directly with the protocol where their funds are held. Alternatively, you may use another service to access these services.
One of the team members behind the Oasis.app platform also explained the decision taken by the company. The member states that the terms of service of the application have been updated in compliance with relevant laws and regulations.
Your capital is at risk.
Following these rules, Oasis will no longer provide the functionality of the Oasis.app with access to any authorized wallet addresses. The change in the regulatory framework in various jurisdictions has forced crypto-based platforms to change their way of working.
Oasis has grown to become one of the largest DeFi platforms. In 2020, it received $6 million in funding in a Series A funding round. Oasis provides services related to DeFi loans and mortgages.
Oasis is a protocol that processed $4.6 billion in transactions last month. Moreover, it manages around $3.42 billion in deposits. The platform has yet to provide details on how it identifies wallets it deems high-risk.
Changing the regulatory framework on DeFi platforms
Leading decentralized exchange Uniswap has announced changes to its terms of service. Uniswap has started banning wallet addresses linked to illegal activities based on information provided by TRM Labs.
TRM Labs is an entity that supports the detection and investigation of financial crimes related to crypto products by analyzing on-chain data. The comments regarding Oasis and the ban on some wallet addresses received a response from the community.
A Discord user said he was dealing with the coin through an account directly linked to Tornado Cash. The user added that he could not reproduce the same version as the others because the team could be incompetent and took extensive measures to enforce the new terms.