Even though IDEX is known as an decentralized exchange (DEX) on the Ethereum network, it shows all signs of centralized rules and enforcement. The DEX will soon implement Know Your Customer (KYC) policies comparable with those enforced on centralized exchanges. On top of that, IDEX is enabling regional restrictions which will block people from certain regions.
IDEX is operated by Aurora Labs S.A. They believe a ‘robust KYC and anti-money laundering framework’ is needed to keep operating properly. Apparently IDEX is already blocking people with an Iranian or North Korean IP-address. Soon it will add Cuba, Syria, Crimea and Washington state, including New York, to the list.
Obviously an IP-address can easily be faked by using a VPN connection, but the new KYC rules would really deny access to people from certain regions. Conventional exchanges like Binance, Bitfinex and Coinbase already require users to identify themselves through a KYC verification.
IDEX is not a huge exchange. According to CoinMarketCap it’s placed 97th with a daily trading volume just above 2 million dollars. The exchange offers 447 trading pairs of all kinds of ERC20 tokens.