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Uniswap: DeFi Exchange on BaFin's Radar

A few days ago the DeFi exchange Uniswap launched its own wallet.

By Finst News
• 2 min read
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Uniswap: DeFi Exchange on BaFin's Radar

A few days ago the DeFi exchange Uniswap launched its own wallet. Germany's financial regulator BaFin sees this as a breach of the rules and has opened an investigation.

The reason: The DeFi exchange launched a crypto wallet and advertised it to the German public without permission. That reports Finance Forward and cites the regulator's rules.

The targeted search of German visitors came in the form of a tweet. In it, Uniswap urged people to download the new product. Under German law, only crypto providers with a license may advertise their services. BaFin is "just getting started with the investigation," according to a spokesperson.

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Uniswap's decentralization poses a major challenge for the German regulator. A potential target could be Uniswap Labs, the developers of the DeFi exchange. Uniswap Labs' headquarters are in New York. BaFin has previously investigated DeFi projects.

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