The percentage of OFAC-compliant Ethereum blocks being created every day has risen to 73%, raising censorship concerns in the blockchain ecosystem.

Following the censorship of the Ethereum framework posing barriers to the cryptoecosystem’s goal of extremely open and accessible finance, the market has been monitoring Ethereum’s growing adherence to the guidelines set forth by OFAC. According to the development, it has been determined that more than 73% of the blocks on the Ethereum network in the last 24 hours enforce OFAC compliance.

Following the discovery that 51% of Ethereum blocks were OFAC compliant in October 2022, major crypto media companies published an article about the growing censorship issues. But according to mevWatch data, as of November 3, daily block production that complies with OFAC regulations increased to 73%.

Meanwhile, some OFAC-mandated MEV-Boost relays would censor financial activities. Consequently, to ensure the neutrality of Ethereum, the network must implement an uncensored MEV-Boost relay.

Additionally, by removing relays like BloXroute Max Profit, BloxRoute Ethical, Manifold, and Relayooor from their MEV-Boost setup, Ethereum examiners can lower their OFAC compliance.

US Government Agency Sanctions Crypto Points of Sale

Based on OFAC adherence, the United States government agency can apply economic and trade sanctions to cryptocurrency outlets. Meanwhile, Tornado Cash and several Ethereum addresses had already been sanctioned by the agency. Additionally, at the time of writing, 45% of all Ethereum blocks are fully OFAC compliant.

Following the launch of cryptocurrency exchanges by UnionBank, one of the largest multinational banking institutions in the Philippines, in collaboration with Swiss crypto firm Metaco, the adoption of Bitcoin BTC tickers fell $21,265 while Ethereum accelerated.

This suggests that despite the alleged censorship of the protocolit is still widely used today.

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