Aave: Wallet Surveillance Due to Government Sanctions Unenforceable Unless DAO Approves

As reported by The Block, Aave stated that wallet monitoring due to government sanctions cannot be enforced at the smart contract level unless the community agrees. At present, wallet monitoring is only at the front-end layer. Aave smart contracts are decentralized. No one or entity can change, control, update or close the agreement. To make any changes to the agreement or upgrade to smart contract level sanctions, it must be sanctioned by Aave DAO Propose, vote and approve AIPs.