Uniswap Decentralized Exchange New Privacy Policy Says Platform Will Collect User Data – Here’s What’s Included

DeFi Privacy Uniswap

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Ruholamin Haqshanas

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Ruholamin Haqshanas

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Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...

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June 26, 2023 06:56 EDT

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Major decentralized exchange (DEX) Uniswap has updated its privacy policy to now collect certain on-chain and off-chain data from users, a move that has attracted the ire of some members of the crypto community.

Uniswap Labs, the development firm behind Uniswap, announced the news in its privacy policy update in a November 11 post, which ostensibly fell under the radar due to the FTX fiasco and went unnoticed until November 21 after Chinese reporter Colin Wu shared it on Twitter. 

“We do want to make data-driven decisions that improve user experience,” Uniswap Labs said in the announcement. “That includes public on-chain data and limited off-chain data like device type, browser version, etc.”

According to the new policy, Uniswap Labs collects on-chain data that include publicly available information like wallet addresses and transaction history. The platform claimed this is needed to “learn more” about users’ behavior and “screen [their] wallet(s) for any prior illicit activity.”

Notably, the exchange will also collect off-chain data like browser type, operating system, referring and exit pages, device or browser language, and other information. Furthermore, it collects information from “localStorage, mobile deviceID, cookies, web beacons, and other similar technologies” to “remember tokens you import, star, or add to your shopping bag,” among other things.

“Because Uniswap Labs does not collect personal data, any vendors we work with do not have any personal data either,” Uniswap Labs said. “Uniswap does not share your data with any third parties for marketing purposes.”

Uniswap is the largest DEX on the Ethereum blockchain. The crypto exchange has a market share of over 43%, according to data from DefiLlama. Since its inception in 2019, the exchange has seen over $1.34 trillion in volume. 

While the exchange claimed that it would not collect personally identifiable information such as first name, last name, street address, date of birth, email address, or IP address, some crypto users still said the move contradicts with crypto’s core values of privacy and anonymity. 

“While we have the utmost respect in what Uniswap has built, we strongly reject the incorporation of data collection to track user behaviour and onchain activity. This sets a dangerous precedent for DEXes,” the team behind privacy-preserving cryptocurrency Firo said. 

Twitter user CryptoDavid claimed that Uniswap is not the first DEX that has started collecting user data. He also suggested users resort to VPNs if they feel unsafe. 

“This is s****y because i’m not always behind a VPN… So frustrating. But we can’t prevent dapps doing so. Beware of these activites and take measures if you feel concerned,” he added.