Oasis app, a decentralized finance platform, has announced that sanctioned addresses will no longer be able to use its services in a new community Discord post published on Thursday.
Such a group of users will either need to find another service or deal directly with the necessary underlying protocol where funds are held.
Oasis app rids of high-risk accounts
Due to a change to the terms of service, wallets identified as high risk are not permitted to manage positions or withdraw through Oasis.
“We’ve recently needed to update the Terms of Service of the Oasis.app front-end to comply with the relevant laws and regulations,” Oasis team member Gabriel said. The announcement also stated that sanctioned addresses will not access the Oasis.app function anymore.
At the time of posting, it remains unclear which procedures Oasis will use to detect wallets determined to be high risk.
Crackdown on illicit activities
Uniswap, a decentralized exchange similar to Oasis, has recently begun to restrict wallets that are purportedly related to illegal activity using TRM Labs data. TRM Labs uses on-chain analysis to assist entities in detecting and investigating crypto-related financial crime.
Oasis has evolved to become a popular platform for DeFi borrowing and lending, raising a $6 million Series A in 2020. This funding comes after UDHC Finance sent $5 million in the seed round in June 2021, when Oasis left Maker Foundation as part of its dissolution.
The team plans to use the most recent funds to enhance its brand identity, grow its team, and further develop its product offering.
The protocol now oversees $3.42 billion in deposits and has processed $4.6 billion in transactions over the last 30 days.