Ethereum is Getting Closed to Being Completely Censored Because of OFAC Regulations

A 73% increase in OFAC-compliant Ethereum block creations per day has led to increased censorship concerns in the Blockchain ecosystem.

The market has been closely monitoring Ethereum’s compliance with OFAC guidelines, following the Ethereum framework censorship. This imposes restrictions on the crypto ecosystem’s goal to open and accessible finance. Over 73% of all blocks that were made on Ethereum over the past 24 hours are now in compliance with OFAC.

 

Top crypto media companies published an article about the growing censorship issue after it was discovered that 51% of the Ethereum-blocks had met OFAC requirements in October 2022. But according According to mevWatch data as of November 3rd, the daily block production that conforms to OFAC regulations has risen to 73%.

 

Some OFAC-mandated MEVBoost Relays would censor financial activity. To ensure Ethereum’s neutrality, a noncensoring MEVBoost relay must also be implemented.

 

Relays such as BloXroute Max profit, BloxRoute Ethical and Manifold can be removed from the MEV-Boost configuration to help Ethereum examiners reduce their adherence TOAC regulations.

 

US Government Agency imposes sanctions on Crypto Outlets

 

The US Government agency can impose economic and trade sanctions against crypto outlets if they adhere to OFAC. The agency had already sanctioned Tornado Cash as well as several Ethereum addresses. As of this report’s writing, 45% of all Ethereum blocks were in compliance with the OFAC regulations. 

 

After the launch of crypto-exchanges by UnionBank (one of the largest multinational banks in the Philippines), in collaboration with the Swiss crypto firm Metaco, adoption of Bitcoin BTC tickers dropped by $21,265 and Ethereum accelerated.

 

This suggests that the censorship of the internet may not have been an issue. ProtocolIt is still popular today.

Source: Shutterstock

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