Uniswap V4 introduces new Hook to allow developers to use KYC verification in DeFi protocols, causing community controversy

Odaily News A new Hook provided in the Uniswap V4 Hook open source catalog has caused controversy within the crypto community. The Hook can perform KYC checks on users before they trade. An X platform user pointed out that this opens up the possibility of DeFi protocols being whitelisted by regulatory agencies. Hooks are tools that allow developers to customize code without changing the main structure of the program. In Uniswap V4, this Hook will allow developers to use KYC verification in DeFi protocols. The above KYC Hook was launched as an optional feature by community developers on the Uniswap V4 directory, and KYC verification is performed by the NFT. According to another X user, this NFT is specifically targeted at liquidity providers and may be useful for projects that must comply with regulatory requirements in certain jurisdictions. It is reported that Uniswap V4 introduces customizable Hook functionality and is expected to be launched in early 2024, with access limited to governance-approved entities. (Cointelegraph)