Backlash against Uniswap's privacy policy

Key points: 

• The privacy policy states that the exchange collects publicly available blockchain data, information about users’ devices, and information about user's interactions with their service providers.
• None of the information included personally identifiable information such as first name, last name, street address, date of birth, email address, or IP address.
• Concerns among users cite that the collection and storage of user data go against core cryptographic values.

A recently updated privacy policy for decentralized exchange (DEX) Uniswap appears to have drawn the ire of some members of the community, citing concerns that the collection and storage of user data go against core cryptographic values.

In a recent response to a November blog post about its updated privacy policy, some outspoken members of the community said it is unusual for a decentralized entity to collect and store information about its users.

In a Uniswap Labs post on Nov. 11, made around the time of the FTX crash, the decentralized exchange released its privacy policy to explain how it collects and stores user data:

“With innovations around blockchain, web3 aims to reclaim users’ privacy and choice after decades of internet businesses that have eroded it.”

"That's why we're publishing our new privacy policy today - we want to be very clear about what data we protect and how we use the data we collect. Transparency is key. We never want our users to be surprised," it said.

The privacy policy, last updated on Nov. 17, states that the exchange collects publicly available blockchain data, information about users’ devices (such as browser information, and operating system), and information about users' interactions with their service providers, among other things.

Uniswap also said that none of the information included personally identifiable information such as first name, last name, street address, date of birth, email address, or IP address.

Still, some in the crypto community worry that these moves run counter to crypto's core values, which focus on user privacy and anonymity.

OwenP, a partner of DEX SpookySwap, said that it is not common for decentralized exchanges to collect and store user information in the background.

“We were contacted [...] by an infrastructure provider once who asked about our backend and what info we kept we were shocked by the question. ‘None of course’ [was] the answer.”

Meanwhile, on Nov. 21, Twitter user CryptoDavid told his 12,000 Twitter followers that he wasn’t surprised by Uniswap’s decision, as other DEXs had started to do the same.

Transparency has become an industry buzzword following the collapse of the cryptocurrency exchange FTX earlier this month.

Other recent crypto firms that have pledged “transparency,” including implementing proof-of-reserve in the case of centralized exchanges, including Kraken, Bitmex, Coinfloor, Gate.io, and HBTC, have completed audits.

Binance, OKX, KuCoin, and many other exchanges plan to do the same.