IDEX, a self-described decentralized cryptocurrency exchange (DEX) that enables traders to exchange Ethereum tokens, is saying goodbye to customers from New York.
Starting October 25, New York residents will not be allowed to place new orders on the platform, the exchange operator revealed on Twitter.
Last updated on September 20, the platform’s terms of service state that users in Washington state and North Korea are also banned from trading on the exchange.
“Any user that is found to be using the Service from one of the aforementioned jurisdictions will lose access to their account,” the service agreement reads, “their funds will be frozen until the direct withdrawal function activates and the user can interact with the IDEX contract directly to withdraw their assets.”
Perhaps, traders in New York and other banned regions could continue to access the platform by using a VPN to conceal their actual locations, although it is not certain if the service will blacklist Ethereum addresses earlier connected with IP activity from banned regions.
New York, the developer of the controversial “BitLicense” framework, has one of the most rigid regulatory regimes for cryptocurrency exchanges that is the reason why only a few cryptocurrency companies have obtained authorization to run in the state and offer services to New York residents.
Such regional bans, together with the ever-growing number of centralized cryptocurrency exchange hacks, have many within the industry doubtful regarding the present and future growth of decentralized exchanges, which enables traders to change between cryptocurrency tokens while retaining custody of their funds. Top centralized exchanges, as well as Binance, OKEx, and Huobi have even revealed plans to create their own DEX-like platforms to complement and possibly replace their centralized services.