OFAC compliance brings Ethereum further closer to absolute censorship
The daily minting of OFAC-compliant Ethereum blocks has increased to 73%, adding to the mounting censorship worries of the community.
Considering that protocol-level censorship is an impediment to the crypto ecosystem’s objective of extremely open and accessible finance, the community has been monitoring Ethereum’s increasing compliance with OFAC-stipulated norms (OFAC). In the last 24 hours, nearly 73% of Ethereum’s blocks have been verified to comply with OFAC regulations.
In October 2022, Cointelegraph reported on escalating censorship worries after the discovery that 51% of Ethereum blocks complied with OFAC requirements. As of November 3, mevWatch statistics verified that the daily minting of OFAC-compliant blocks has increased to 73%.
Ethereum validators may lower OFAC compliance by removing relays that filter transactions, such as BloXroute Max Profit, BloxRoute Ethical, Manifold, and Relayooor, from their MEV-Boost setup.
Compliance with OFAC permits the agency to impose economic and trade penalties. Previously, the agency authorized many Tornado Cash and Ethereum addresses.
Currently, 45 percent of all Ethereum blocks are deemed OFAC-compliant. After UnionBank, one of the major universal banks in the Philippines launched cryptocurrency trading in conjunction with the Swiss crypto business Metaco, both Bitcoin and Ethereum accelerated.