Orca DEX will prevent US citizens from using its platform to engage in trading activities.
The organization declared that U.S. financiers would still be able to perform swaps by immediately engaging with Orca's intelligent agreements, however.
Crypto exchange Solana has reported a record-breaking month for February, with over $634 million worth of trading volume observed by data provider DefiLlama. Furthermore, the platform has also seen an impressive surge in the total value locked in its smart contracts, currently amounting to a staggering $46 million. This marks a major milestone for the decentralized finance space, as Solana continues to demonstrate impressive growth.
On March 16, the Orca protocol announced a major shift in its trading policy, restricting residents of the United States from trading on their platform effective March 31, 2023. The announcement, which was posted on the protocol's website, had many investors speculating about what could be the cause of this sudden change. While the exact reasoning remains unclear, this move will undoubtedly have a significant impact on the crypto trading landscape.
U.S. users of the Orca platform will have no change in their ability to interact with the platform's smart contract and SDK, or to provide liquidity through orca.so, according to an alert issued by the company. The alert emphasized that these features won't be affected by any changes. With the company's commitment to keeping its services accessible to all users, Orca is taking steps to ensure that it remains a secure and user-friendly platform.
In a recent notice, the US government has announced that Americans who have direct interaction with Orca smart contracts will not be affected by the upcoming change. The notice stated that those engaging with the contracts will be able to go about their business without any disruption.
In a move to provide liquidity to its swap aggregator service, Jupiter is turning to a decentralized exchange (DEX) known as Orca. As a result, traders now have a new option for interacting with Orca's smart contracts – Jupiter's website. This new platform allows users to take advantage of the low fees and non-custodial services of Orca, without the hassle of having to go to the DEX directly.
In a move to comply with U.S. regulations and avoid potential legal issues, some decentralized cryptocurrency exchanges have begun to restrict access to American users. The trend began in June 2019 with Binance DEX banning American users, and more recently in September 2021, when the aggregator 1inch followed suit. The move has not been universal, however, as many decentralized crypto exchanges remain open to users in the United States.
Due to their decentralized nature, Decentralized Exchanges (DEXs) are beginning to become an increasingly popular choice among users seeking to bypass geographical restrictions. Unlike conventional centralized exchanges, DEXs do not rely on a centralized database or “back end” controlled by the developer. This allows users to connect directly to the blockchain via development tools such as Truffle and Hardhat, or hide their IP address with a VPN to bypass geo-restrictions. As DEXs become more popular, users will be able to access greater freedom when trading cryptocurrencies.