OFAC-compliant Ethereum daily minting has increased to 73%, raising community concerns about censorship.
Given that protocol-level censorship is a deterrent to the crypto ecosystem’s goal of maximizing open and accessible funding, the community is monitoring Ethereum’s growing compliance with the standards set by the Office of Foreign Assets Control (OFAC). Over the past 24 hours, the Ethereum network has been found to be OFAC compliant in over 73% of its blocks.
Ethereum has 73% OFAC compliant blocks. Source: mevwatch.info
In October 2022, Cointelegraph reported on growing censorship concerns after 51% of Ethereum blocks were found to be OFAC compliant. However, mevWatch data confirmed that daily OFAC-compliant block printing increased to 73% as of November 3rd.
Ethereum PFAC compliance trend. Source: mevwatch.info
Some OFAC regulated MEV-Boost relays will censor certain operations. As a result, the network must accept the uncensored MEV-Boost relay to ensure Ethereum neutrality.
Ethereum validators can reduce OFAC compliance by dropping transitions that censor transactions such as BloXroute Max Profit, BloxRoute Ethical, Manifold, and Relayooor in MEV-Boost configurations.
OFAC compliance allows a US government agency to impose economic and trade sanctions. Earlier, the agency confirmed Tornado Cash and several Ethereum addresses.
As of today, 45% of all Ethereum blocks are considered OFAC compliant.
Related: Ethereum Sets ETH Short Liquidation Record, Wiping Out $500M in 2 Days
General acceptance of bitcoins
It accelerated after UnionBank, one of the largest universal banks in the Philippines, began trading cryptocurrencies in partnership with Swiss crypto firm Metaco.
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“We are proud to continue UnionBank’s streak of innovation in the industry, this time by becoming the first regulated bank in the country to enable customers to exchange digital currency,” said Henry Aguda, CFO and CFO of UnionBank.