A few days ago, the decentralized crypto exchange Uniswap launched its wallet. But there are teething problems: First, Apple did not approve the app, and now trouble with the German financial regulator is looming.
A Siemens employee started one of the most significant global crypto projects. Since Hayden Adams founded Uniswap in 2018, the decentralized crypto exchange has developed rapidly. It reached $100 billion in trading volume in early 2021. Well-known backers such as Andreessen Horowitz have bet on Uniswap.
Uniswap does not act like a traditional trading exchange. It allows users to trade cryptocurrencies directly with each other without using an intermediary. This is referred to as “decentralized finance.” And now brand new: the crypto project launched its wallet a few days ago.
But right after the launch, the German financial regulator Bafin started investigating Uniswap. On March 5, 2023, Uniswap tweeted the link to the Testflight sign-up for its mobile wallet app for iOS with the message “Guten Morgen Deutschland!” (Good morning Germany!). The tweet was written in German and thus also addressed to customers in Germany.
Because there is no system operator in the case of a decentralized exchange such as Uniswap, it is impossible to verify an operator. “Bafin is only at the beginning of investigations in this respect,” the authority says.
There have already been investigations by the financial regulator Bafin against crypto projects in the past, for example, against Cakedefi by Julian Hosp. The latter stopped advertising in Germany. In the case of Uniswap, too, it is likely that the crypto project will make a beeline for the German market – and stop marketing.