Decentralized exchange (DEX) liquidity aggregator 1inch has started blocking access to US users based on IP addresses.
The company's chief communications officer Sergey Maslennikov told The Block the project is setting the stage for the launch of a new product in the United States.
As for the platform's terms of use, the participation of US customers was limited back in April, however, the limitation had not been implemented at the technical level until now.
According to Maslennikov, 1inch has added "one more pop-up notification and technical layer to control this." He has added:
"The 1inch Network is in the process of collecting the Series B funding round that has now grown to $175M (instead of $70M as was planned before). A significant part of these funds will be used for the development and launch of the 1inch Pro product which is specifically designed for the US market and for global institutional investors in accordance with all the regulatory requirements."
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1inch is the largest DEX liquidity aggregator. In September, the platform's users transacted transactions valued at more than $7 billion, while at its peak in May 2021, the figure reached $9.8 billion.
Some centralized exchanges such as Binance have long banned access to international platforms for US customers and have launched separate divisions for the US market.
DeFi players are also being forced to adapt to a changing regulatory landscape. For example, in July, Uniswap Labs stopped exchanging 129 tokens on its interface.