Considering that protocol-level censorship is a deterrent to the cryptocurrency ecosystem’s goal of making finance very open and accessible, the community has been following Ethereum’s increasing compliance with the standards set by the Bureau of Cryptocurrency Control. Foreign Assets (OFAC). In the last 24 hours, the Ethereum network has been found to be OFAC compliant in over 73% of its blocks.
In October 2022, Cointelegraph reported on growing censorship concerns after 51% of Ethereum blocks were found to be OFAC compliant. However, data from mevWatch confirmed that daily OFAC-compliant block minting has grown to 73% as of November 3.
Some MEV-Boost repeaters – which are regulated by OFAC – will censor certain transactions. As a result, to ensure the neutrality of Ethereum (ETH), the network needs to adopt a non-censoring MEV-Boost relay.
Ethereum validators can reduce OFAC compliance by dropping relays in their MEV-Boost setup that censor transactions, such as BloXroute Max Profit, BloxRoute Ethical, Manifold, and Relayooor.
OFAC compliance allows the US government agency to apply economic and trade sanctions. Previously, the agency sanctioned Tornado Cash and several Ethereum addresses.
As of today, 45% of all Ethereum blocks are considered OFAC compliant.
The mainstream adoption of Bitcoin (BTC) and Ethereum accelerated after UnionBank, one of the largest universal banks in the Philippines, debuted in cryptocurrency trading in partnership with Swiss crypto firm Metaco.
“We are proud to continue UnionBank’s series of industry firsts, this time being the first regulated bank in the country to enable digital currency exchange features for customers,” said Henry Aguda, chief technology officer and chief transformation officer at UnionBank. .
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