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Market News

MakerDAO’s Spark Protocol Blocks its Access to VPN Users

Spark protocol’s website displays that accessing it via VPNs is not allowed.

Written By:
Gopal Solanky

Last updated: August 7, 2023 7:47 AM
Published 2023-08-07
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MakerDAO's Spark Protocol Blocks its Access to VPN Users

The pioneer and one of earliest DeFi protocols, MakerDAO has taken a controversial decision for its Spark protocol after it has suspended VPN users from accessing the recently launched lending platform. 

While blocking users who are connected to VPNs, Spark protocol’s website displays “Accessing this website via VPN is not allowed.” The protocol’s updated terms of services previously warned to not use VPN or it may block users permanently. 

The DAO has essentially taken this decision in an attempt to restrict users from accessing protocol’s services within the US. Its website also states in footer that accessing Spark Protocol is prohibited in the USA. 

I rarely get as disgusted as I am right now with MakerDAO's Spark Protocol.

It's one thing to block US residents.

It's a whole other thing to block anyone in the entire world who is using a VPN for privacy.

This isn't just govt cuckery.

This is an actual war on privacy. pic.twitter.com/dUbsMeVzbZ

— CS Bastiat ⚖️ (@CSBastiat) August 6, 2023

With this move, MakerDAO has received backlashes from the community as while it being at the forefront of spreading decentralization and restricting users from a certain geographical location. 

A popular DeFi personality, Chris Blec criticized DAO’s decision citing that blocking users from US and others using VPN is a whole different thing.

Spark protocol is a liquidity marketplace that allows users to lend or borrow DAI with other crypto assets. It was launched by MakerDAO in May to enable financing with its usd-pegged DAI stablecoin. 

Also Read: Revolut Ends Crypto Services In the US Amid Regulation

Disclaimer: The information researched and reported by The Crypto Times is for informational purposes only and is not a substitute for professional financial advice. Investing in crypto assets involves significant risk due to market volatility. Always Do Your Own Research (DYOR) and consult with a qualified Financial Advisor before making any investment decisions.

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Gopal Solanky, Senior Reporter for Markets and Protocols at The Crypto Times
By Gopal Solanky Sr. Crypto Journalist
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Gopal Solanky is a Senior Reporter, Markets & Protocols at The Crypto Times, based in Ahmedabad. He covers institutional crypto adoption, Bitcoin treasury strategies, DeFi markets, protocol ecosystems, Ethereum network activity, Hyperliquid, on-chain trends, and broader digital asset market movements. Gopal has been active in the crypto ecosystem for more than six years. Before joining The Crypto Times full-time in 2023, he worked as a freelance crypto content writer, developing a strong understanding of blockchain infrastructure, DeFi protocols, market cycles, token mechanics, and peer-to-peer systems. His reporting focuses on explaining how protocols work, why market movements happen, and how institutional and on-chain activity affects crypto investors and builders. At The Crypto Times, Gopal regularly writes market analysis, protocol explainers, breaking news, and technical breakdowns across Bitcoin, Ethereum, DeFi, altcoins, treasury companies, and Web3 infrastructure. He also conducts on-the-record interviews with regional Web3 founders, protocol teams, and ecosystem leaders. His work has been cited by external publications, including Vulture.com, in coverage of major crypto stories such as the Hawk Tuah memecoin controversy. His reporting has also contributed to The Crypto Times’ coverage of major industry events, including FTX-related developments, institutional crypto adoption, and emerging protocol narratives. Gopal holds a Bachelor’s degree in Computer Applications, giving him a technical foundation for analyzing blockchain systems, crypto infrastructure, and market data.

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