New Yorkers No Longer Allowed On IDEX

New York residents will no longer be part of the team due to strict regulations.


Decentralization Locks Out New York Residents

According to a study conducted two months ago by Alethio, IDEX was classified as a decentralized exchange. This conclusion was arrived at after it emerged that the exchange had 69,000 trades in 14 days compared to 10,000 on the Bancor exchange which is ranked second in the decentralization chain. Interestingly, IDEX has come out to state that all New York residents will be barred from the platform as they lack the requisite decentralization.

All traders with IP addresses recorded in New York will not be allowed on the platform. At the moment, New Yorkers who had already initiated transactions have the opportunity to revoke their orders as well withdraw funds.

Across the United States, New York has been viewed as unfriendly in regulatory terms when it comes to cryptocurrencies. Recently, the state enacted a policy that required all centralized platforms to obtain a new York Bitlicense. The license is hard to get. Failure to adhere to the order has led to some exchanges being barred from the East Coast.

In this case, IDEX can gain access to IP addresses of clients. This is a clear indicator the exchange is now centralized. Notably, the exchange provides approved trades in Ethereum. In return, ethereum has the authority to block trades. IDEX might become centralized after New York authorities threatened the platform with a number of sanctions.

Looking at the IDEX model, it is also decentralized due to the fact that investors are not allowed to deposit cryptocurrencies on the platform. Participants are only required to hold their private keys all throughout the trading session. All trades on the platform are conducted through multisig Ethereum smart contract transactions.

From all trading platforms, Bisq is the only decentralized exchange. At the firm, we do not have a focal team to attack. This model keeps the government at bay since there is nobody to attack. Developers of Bisq established an open source code that is almost autonomous. It plays a role in mitigating disputes involving fiat payments.

The mitigation role by Bisq is however limited to some extent. It cannot block a trade involving investors. On the IDEX platform, trades can be blocked since there is a central node of control. Bisq emerges as the winner because it can operate in any jurisdiction no matter the laws. However, it is the role of the user to adhere to all regulations or risk being banned.

2 years ago

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