Decentralized exchange Uniswap has added functionality for direct cryptocurrency purchases with credit cards, debit cards and bank transfers.
In a Dec. 20 announcement, Uniswap said users would be able to convert fiat currency into crypto on Ethereum, Polygon, Optimism and Arbitrum without going through a centralized party.
The new feature is a result of Uniswap’s partnership with crypto payment solution MoonPay and will let users go “direct to DeFi.”
Initially, supported tokens will be limited to DAI, ETH, MATIC, USDC, USDT, WBTC and WETH. These token purchases will also depend on the user’s region.
“For example, US users cannot purchase WETH or WBTC,” said Uniswap.
While the new method provides an easier way for users to convert their funds to crypto, a method for moving funds back to fiat is not immediately available. Uniswap said it is working on a way to integrate off-ramp transfers and until such time users would need to use other off-ramp platforms.
In order to make crypto purchases in this manner, users will have to verify their identity as per MoonPay’s KYC/AML policy. Uniswap emphasized that it does not collect and store users’ financial data, including names, addresses or card and bank information. The platform recently attracted criticism from industry watchers after it disclosed that it stores some on-chain data when users connect their non-custodial wallets.
Tuesday’s announcement was largely met with a positive response from crypto proponents, most of whom welcomed the feature as a “step in the right direction.” However, some users opined that while it is a good option to have, it still requires KYC inputs on MoonPay which somewhat negates one of the main advantages of not using a centralized exchange.
“Also the rates aren’t the best, no limit orders etc. It makes more sense to deposit to any exchange, buy with all the benefits and control, then send on-chain,” tweeted one user.
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