Bitcoin Forum

If crypto becomes extremely popular in the future (widely adopted by a vast majority of people worldwide), it's probable governments will turn against it. They can pressure centralized exchanges to close up shop or face serious consequences in the long run. After all, these exchanges are the on and off ramps from the crypto world to the Fiat world. While not every country is against crypto, they might change their stance once they see Russia using it as a means to avoid sanctions.

Imagine if most countries unilaterally agree on banning centralized exchanges for good. Will that mean the end of crypto for good (even though it would still be possible to get some crypto through decentralized exchanges)? After all, most people will be afraid of using crypto if it's declared "illegal". The ban of centralized exchanges will surely topple crypto prices, signaling fear among investors and traders alike.

What are your thoughts? ???

It is also most likely that governments demand more control over the centralized entities. Regarding Russia, well, the world does not tend toward the west, recently India bought Russian oil and they are still also "backed" by China. I think Russian using cryptocurrency does not have a correlation with other country banning it, surely there is a more approachable way for them to get around the sanctions.

Fearing the investors and the traders, yes they will be. But for the people who truly make use of a decentralized currency, I don't think they have lost the meaning of using cryptocurrency. I presume the government rather crackdown on miners rather pressure centralized exchange, if their motives to total ban cryptocurrency, then they should be considering taking down the system as a whole.

It's probably most governments will crackdown on miners, after banning centralized exchanges altogether. But just like China, they won't be able to "destroy" crypto because of its decentralized and censorship-resistant design. People can still use crypto in China through other means. But they're going to have to do it in secret because if they're caught, it's "game over" for them. I'm glad Satoshi designed Bitcoin to be decentralized and open source, or it would've been dead by now. A centralized crypto ecosystem would make it easier for governments to destroy altogether. After all, they don't want to lose control over people's money.

No centralized exchanges means decreased adoption for crypto/Blockchain tech in the mainstream world. Perhaps, prices won't be as high as they are right now as demand for crypto will be limited. I wouldn't worry about this as long as crypto stay true to its roots by being a decentralized kind of money anyone can use worldwide. Just my opinion :)

Cracking down miners would be a prominent option, but I think it is pretty much pointless. And yes they will only do it as a last resort. The reason why I think it may be pointless is that noting there is a country that already made Bitcoin as a legal tender, so ideally they should keep supporting it.

After all, the decentralized nature is what made peoples have power and their own control. So I do too wouldn't worry about it too much besides a few scenarios that addressed all above ;)

Better solutions will erupt before that time comes, the government wants everything under its palm but not crypto, we have DExs now but still not perfect cos they have their flaws too let's just hope that decentralisation gets stronger as time goes by.

If centralised exchanges are banned, i am very sure that founders of these centralized exchanges themselves would create decentralised exchanges which could work much better than or atleast at par with the centralised exchanges of today. The only problem that decentralised exchanges face is the volume and fees, volume problem will automatically get solved if centralised exchanges are ban and fees problem can be solved by using a coin with low fees.

The majority of users today prefer low transaction fees and being able to trade multiple currency pairs on one platform and we can convert to fiat quickly. I think this is the reason CEX is still popular.
Decentralized exchanges are still heavily restricted, but if centralized exchanges close completely, then developers will focus on developing and promoting the entire decentralized exchange to in line with market needs.
But the hypothesis that the entire CEX is banned is almost impossible. Instead of the government against, the government will make strict regulations or through CEX the government can control our transactions.

To be honest i think if that ban would have occured like 2 years ago then this could have potentially been the end for the whole crypto space because back then there were no real Dexes yet, except one on the ETH network which name if have forgotten at the moment but i also remember that the functionality of that DEX was by far not as good as it is today.
That is also the reason why i think that a ban of centralized exchanges would not really be the end of crypto anymore today because just take a look at how many Dexes we have out there now already there are at least a few to chose from for basically each relevant blockchain out there. So the trading could continue.

Some country had legalised the bitcoin in many mode.China legalised before and many people had invested on mining in crypto mining.After some years government of China had come to know they was second on crypto mining setup.Then China had stopped the mining,it impacts the huge difference in 2018 in the bitcoin price.

I think Centralized exchange is the core of the community on the world side, however the government will not be able to curb people freedom to keep using crypto, maybe crypto will fall in price if the government imposes a ban to centralized exchanges. However, this situation may not be happen because the government is there for the people, not the people for the government. Although the future no one knows but as far as I know the government can't raise its his wish to make the people unhappy.

When people are having cryptocurrencies because they want to avoid the use of fiat they why they have to convert their cryptocurrencies to fiat anymore they can simply transact via cryptocurrencies itself right.

Anyway if all the centralized exchanges are banned still the decentralized exchanges and p2p may work probably from El Salvador even centralized exchange as well.

I don't know, if this happens then there could be a huge influx of CEX moving to a friendly crypto countries. I think this will be the only solution of countries started to banned them. I mean it's going to be very difficult to stop crypto, every one is trying to get on-board including countries. So I doubt that "unilaterally" there will be such a ban.

Besides, crypto is decentralized, the only way to stop it, is to cut the internet around the world, which is not going to happen unless we are in a world war or something really happen like huge earthquakes.

There will be a consensus that everyone wouldn't care if the exchange is licensed or not. As long as they've got the reputation and they've been there operating genuinely, there's the chance that despite declaring ban on exchanges and crypto, still, there will be a lot of them in existence.

This is a free market after all, a decentralized market for which no country can cease its existence. So no matter what happens, there will always be the solution with these bans.

I think it’s quite clear that without the big, well known, centralised exchanges then crypto wouldn’t be as successful & mainstream as it currently is. Governments would probably have cracked down & shut down exchanges that didn’t comply with their annoying KYC & AML rules.

Yes, yes and yes.

In early-stage on "Bitcoin" almost all-transaction is from user to user that's mean we are not using centralized exchange because at that time we don't have it any. Escrow is the one solution, or some decentralized service who can connected buyer & seller directly.

The only problem of this case is trust issue, that's all.

There is a difference between banning Cryptocurrencies and banning Centralized Exchanges.  But in both situations, what happens is a big chunk of the users will go away and there will be a specific part of them which will continue to use Bitcoin with Decentralized Exchanges, Peer to Peer transactions et cetera.  Cryptocurrencies would however NOT die.  I really doubt they would.  Maybe all of them except a few, but Bitcoin definitely would not become obsolete.

Think of what Bitcointalk looked like a decade ago.  This is how I would see Bitcoin in the situation where Centralized Exchanges are torn apart.  If Cryptocurrencies are declared illegal, they may just continue to thrive in the underground markets.

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Regards,
PrivacyG

I understand CEX offers a great services but we have no choice but to look for alternatives if many countries will ban CEX, we are still lucky that some DEX are able to compete with those CEX so for sure they are the next option and DEX will rise more if this will happen. Governments are really unpredictable, they have the power to control CEX so we should always have the second option and never put big money on CEX to avoid problems like this.

i believe it is good that China is already out of the picture but there are still miners from china. and regarding CEXs, where the OP mentioned that maybe russians will use it to avoid sanctions, if the government is indeed strict about it. these exchanges can just freeze or not accept russian accounts. but they can still operate. they are just prohibiting russians to use their services. and with regards to the use of CEXs, just don't store good amount of money on their platform. better secure it in your wallet. so if something happens, your funds are with you.

Regulators are more worried of centralized exchanges now since majority of them still refuses to block Russian customers but it remains unlikely that there will be a unilateral ban.

What's even more clear to me is early users made these centralized exchanges to what they are today. It will be these same users who can make decentralized exchanges big enough when that complete ban on CEX comes.

Just like on what Binance did on where it do refuses on blocking Russian users into the platform and into the point that most government would banning or blocking or closing centralized exchange then

it would be still surely on a big debate or long due process for it to happen and if it does then we do have DEX around which we could make use of and of course there are various ways
on making out conversion without touching or needing on what these CEX is giving out but honestly i dont stress out myself about these probabilities.

Certainly, centralized exchanges could not do the business without the approval of the government where they are operating. Now, in case the government will make centralized exchanges as illegal then certainly confidence of the people with cryptocurrency can be affected greatly...as only a small percentage of those who are into crypto will persist when they know there can be some big risks involved and we are witnessing this right now in China that though there are those who are doing business in crypto they are gone underground. However, it does not mean the end of cryptocurrency and the good news is that many governments are getting to be open-minded to cryptocurrency though they are into highly regulating everything on the industry.

I don’t think so. I think that the government are starting to know that without centralised exchanges that their  power on cryptocurrency community is useless. If the government decides to ban cryptocurrency, and stop centralized exchanges it might affect the market for a short time because mostly people who are newbies in the market will be confused as to how to go about it.

Some people don’t know how to make use of decentralized exchanges, so they tend to go for centralized exchanges like coinbase.com which offers them simplicity. But, as time goes on they will get to learn how decentralized exchanges and wallets works and then they will all get back and the cryptocurrency community will start blooming again while the government is left in the dark.

And the government wouldn’t like to experience such so they will still want centralized exchanges to continue and would want everybody to make use of centralized exchanges so that they will be able to control the crypto-currency market.

Personally, I always appreciate the important role of CEXs in this area. It seems to be the tools that lead users to the market more. After many years of operation, I still see this as unchanged. The diversity in this space leaves us with more options, but the influence of CEX is a very obvious one. I believe that some of the investment behaviors of many people are based on information navigation from CEX. Those of us who came to this market before had only a few options to be able to buy crypto, so the influence The effect is huge here.

If you are talking about simply buying cryptocurrency to then store it in your personal wallet, there is not much difference between buying on a centralised or decentralised exchange. And if you're talking about additional trading tools like leveraged margin trading or futures, DEX is still very much behind CEX. But I think that will be corrected with time. There used to be no DEX at all, but now there is a huge range of them.

Decentralized exchanges act as an alternative to centralized exchanges and allow you to remain anonymous when trading. Given the fact that DEX has already implemented almost all the services that are available on CEX, if centralized exchanges are banned, almost nothing will change for the trader, but the state will lose control over them.

expensive because it will be difficult to trade coins that are on different blockchains. unlike during CEX, which only requires a deposit and trades. if using DEX there are several stages to sell the coins that we have. and plus without CEX we will find it difficult to exchange it with FIAT. so if crypto is banned and the entire CEX is suspended, maybe crypto will have a hard time.

Are you really saying what I have shared? We are talking about the impact it is having on the crypto industry, as today many people are boycotting the denial of contributions from CEX.
You know, in the past, the DEXs we used were illiquid and it was never a preferred option, but times have changed and so have the variety of ways to approach it. So do not say the problem is not related to the main.

I think without a centralized exchange cryptocurrency is just a code of money to be used for evil.
Actually this has been happening for a long time, before centralized exchanges were not well known, they would transact with bitcoin on black markets such as the deep web or dark web.
They would probably exchange money manually without a central exchange, of course it would only cost a transfer transaction, but it was quite cumbersome compared to using a centralized exchange.
Moreover, if all governments ban the circulation of cryptocurrencies so that there are no more centralized exchanges, it is likely that bitcoin will soon disappear from society.

if this happens then it's really a big risk for users on that CEX.

I find that the security or guarantee of freedom for users has always been clearly stated on the regulations,

so the easy tie between each other will sometimes take time to solve the CEX and users.

I think, this possibility is rather impossible, even if it happens that the exchange is banned, then the owner of the central exchange will definitely create such a thing as a decentralized exchange that can work as effectively and efficiently as possible, and it can also be said that the centralized exchange is one of the important tools for the world community, and the government cannot stop people from continuously using crypto.

according to what I see from its development, in the future, it seems that many countries will allow these coins or what is called crypto, and maybe in the future if problems occur none other than the following problems, the first problem with decentralized exchanges will be problems in volume and fees, and the other problems in decentralized exchanges will lie in trust.

Without centralized exchange cryptocurrency can still run because of decentralized exchange,
now we are in DeFi era, many dex swaps like Uniswap, Sushiswap, Justswap, Pancakeswap, we can use it to do exchange.
But there is a weakness that I see, because it is a dex swap, we can't determine the price we want, and we always depend on liquidity,
even if the transactions are usually quite expensive, such as slippage + approve fees.

That will be the biggest conflict if ever that happened. Most users will likely complain but I doubt government will do this, as some of them are actually into crypto as well. Its gonna be a long fight whether crypto become illegal, a lot of personalities and even big names are trading it. They could arrange some regulations and rules for it. But totally removing it? Its so impossible to happen.

If something like this where to happen in the future, I think it will give rise to more dex, like the attention will now be on how to create more dex suitable for all users, it is because of the existence of cex that dex are not given the much needed attention. Such situation will affect crypto for some time but once there are enough dex to provide services and take cex place everything will go back to normal and government will have little or no control then.

Are you trying to say that there is no possibility that the government will or can ban cryptocurrency? In a lot of countries we have already seen the government take such an action and banned cryptocurrency exchanges from their country and also the use or buying and selling of cryptocurrency.

So, the government in any country can do such a thing but there are still the ones who do understand what cryptocurrency is all about and they see that there is the need for it so they decide not to ban it and allow their citizens to make use of it. Some of them then go as far as having regulations for cryptocurrency trading and also expect their citizens to pay tax for cryptocurrency.

Crypto are already popular if governments were to ban them and close centralized exchanges in my opinion there would be no problem anyway there are always interpersonal changes, face to face, or sites where you can buy coupons for online services

I agree it will drop the price and have a big impact. but will not make crypto die. if there is no CEX, we still have DEX and there is no way the whole country will ban it. although later the fee will be more expensive, but it will be a way for crypto not to depend on a centralized system like today. but back to the discussion, this is just a possibility that will not become real. due to the fact that today there are more countries that are more open and willing to accept crypto than reject it.

Even if the governments of all the countries will announce crypto is illegal and if will ban all the centralized exchanges, i don’t see anything very scary here because we have another alternative option is Decentralized exchanges, So that i think it will not be big impact on the market. But it’s true that, we will face some difficulties without CEX, as like DEX (ERC-20) is very expensive in case of gas fees which will not be fair for the all users who's small traders.

Relying on CEX is putting crypto users on a high-risk precedent from government regulation.  It may suffer from that but the DEX is completely independent.  From that point of view, I think DEX is the future of trading.  Currently, DEXs are quite diverse and also develop separate financial ecosystems such as staking, lending, borrowing, etc. or margin trading, but clearly, the market is not ready to do this yet.  there.  Cex is still an important thing to the development of the market today.

This is unlikely to happen. It makes more sense to ban cryptocurrencies themselves than centralized exchanges. Imagine a situation where the government saw a threat in food products and banned stores that sell those products. Why? Wouldn't it be easier to ban the food itself? With the level of legalization of cryptocurrencies and the acceptance of cryptocurrency in general, a move like a complete ban on exchanges would be extremely illogical. After all, if you ban exchanges, there will be other ways to sell cryptocurrencies, and decentralized exchanges can also be banned, because they also act under someone else's jurisdiction.

In simple words, banning centralized exchanges is slightly less stupid than banning bitcoin. There is already too much money involved in the industry and too much infrastructure built for governments to take such stupid steps.

It will function completely fine. And besides, most big exchanges already require KYC so most people don't bother using them.

The stablecoin ecosystem alongside the amount of DEX's have made it extremely accessible for people to start using crypto without ever having to sign up for a centralized exchange.

This is why you see a lot of hype around AMM projects whenever they come out. Certainly not too late to get in.

You have good logic about this case. Why not ban the usage of crypto itself if they will ban the platforms that are utilizing it? So nope, I am not seeing this happening. A lot of countries are already changing their stance towards crypto because even if they don't participate in this market, this continues to thrive. And they are already seeing it at a global scale. So why ban it if they can generate money from this industry?

Never say never since governments are capable of doing anything in order to avoid losing power in the long run. Banning centralized exchanges altogether would be the ideal strategy to diminish crypto usage within the country. China did ban centralized exchanges with success, so it's probable other countries will do the same if they feel crypto threatens their economies. Without centralized exchanges, I guess developers will focus more on improving decentralized exchanges' performance. Liquidity for DEXs will surely increase as people pour money like crazy in these platforms.

While the total ban of centralized exchanges won't destroy crypto completely, it will certainly have an impact over its mainstream adoption. Market prices will probably go down the drain as most big investors will be afraid to join the crypto/Blockchain space. But Blockchains themselves won't disappear because of their decentralized and censorship-resistant design. Who knows what the future holds for the entire crypto/Blockchain industry? Just my thoughts ;D

Of course, there is no 100% guarantee that this will not happen, but I am sure that if major countries block exchanges and cryptocurrency, following the example of China, these exchanges will simply open under new jurisdictions and continue to operate. It is impossible that absolutely the whole world is against cryptocurrencies. Cryptocurrencies are a business and it is bound to benefit someone in this world. The crypto industry is mobile. Remember how miners simply changed their location after the ban, the same will happen to exchanges. Yes, the market will be shaken by such bans, but after exchanges reopen in other places, the market will start to recover, just like the hash rate recovered after the Chinese ban. It is impossible to ban cryptocurrency completely.

If governments unanimously rely on a "One World Currency", then it's probable they will ban crypto altogether. But it's very unlikely we'll ever see such a unified currency, since countries can't reach a common agreement. As long as this is the case, it will be impossible to ban crypto for good. Even if they did, crypto will still survive thanks to its decentralized and censorship-resistant design. Centralized exchanges only constitute a small portion of the crypto ecosystem, as the rest is dominated by miners, stakers, and even decentralized exchanges themselves.

What matters here is decentralization. With it, crypto will be able to stand the test of time regardless of a government crackdown or ban. Who knows if crypto lives alongside Fiat for generations? Just my opinion :)

Of course, the relationship between states and cryptocurrencies will constantly change. The great popularity of cryptocurrency among the population of almost all states is a good guarantee that civilized countries will not prohibit the use of cryptocurrency. But the conditions of her walking will change until the optimal middle is established.

Cryptocurrency exchanges will be forced to work on the terms of the states at the place of their registration and location. Many discussed the fact that Binance refused to block Russian accounts. Now the head of one of the pro-Russian parties in Ukraine, Shariy, complains that, at the request of Ukraine, Binance blocked his cryptocurrency on this exchange. At the same time, the exchange provided Ukraine with all the information about itself, including all codes for managing cryptocurrency.

It is unlikely that the world would use anything uniform, there have always been discrepancies. I don't remember a time when the whole world used any particular standard or measure of measurement. Likewise with the attitude towards cryptocurrencies. Someone will not support the majority in any outcome. We will never see a single cryptocurrency solution and we will never see a single cryptocurrency for everyone.

On centralize exchanges accounts of users can be blocked. Also there are hackers who hack centralize exchanges. That is why many people prefer to use DeFi. For DeFi security is important like this https://twitter.com/MissionDogeOne/status/1506922981636952066

Centralize exchanges continue to block accounts of users. That is why many users do not trust centralize exchanges.
Adoption of cryptocurrency grows and many investors and traders prefer to use decentralize exchanges why can not block accounts of users.

Of course, it is better to use decentralized exchanges than centralized exchanges, because many investors use decentralized exchanges, I also don't recommend for centralized exchanges, because I heard a lot of hackers doing hacks on such centralized exchanges.

DeFi projects now actively developing and offering more and more useful tools.
It becomes more secure and more simple to use DeFi. Also DeFi offer many opportunities to earn money.

DeFi tools are actively developing offering people more opportunities to earn money and different financial services.
Noq DeFi exchanges offers a big competition to centralize exchanges. And DeFi exchanges started to win in such competition.

The more popular the DeFi exchanges the more people use them. So the liquidity of DeFi exchanges grows and they are albe to win competition with centralize exchanges.

Yes, to reach on a common currency for the entire world won't happen. This is all because of the difference in the economies and countries won't destuct their own sovereignty. With cryptocurrency too the same is happening, the gold standard is the only thing that is being commonly followed by the countries. Maybe something similar to gold standard out of bitcoin might interest governments, but the volatility won't let it happen.

Crypto may not reach a level where it's completely prohibited to use it, but it'll be extremely regulated that only a few will find it attractive as a long-term investment. Governments are smart, as they bring "obstacles" or "bottlenecks" to the crypto industry for people to have no reason to abandon Fiat altogether. Without centralized exchanges, I don't think crypto would've reached massive adoption worldwide. I'm pretty sure crypto would've been "illegal" if only decentralized exchanges were in existence. At least, crypto is too big too fail. Who knows if it lives alongside Fiat for generations? Just my opinion :)

As far as I remember, the gold standard is no longer used, the last talks about its return were back in 2007, but the idea was not supported.

As for cryptocurrencies, there could be an interesting trend of using bitcoin as a gold standard for stablcocoins, as LUNA recently did with its UST stablcocoin. It's no secret that centralized, dollar-backed stablenecoins have a number of drawbacks, e.g. not all tokens are backed by real dollars. Most coins are backed by all sorts of securities and other similar assets.

People must be sure that their funds are kept in a safe place. The accounts on centralize exchanges can be blocked or banned. That is why many people prefer to use DeFi products and their adoption grows.

Yes, we could see the volume on here.
https://www.theblockcrypto.com/data/decentralized-finance/dex-non-custodial

So the trend did really make out some effects in terms of volume
but lets just accept the fact that it couldnt still beat up CEX when it comes to that.

Why? As long it doesnt really involved fiat conversions then it would really be staying below CEX.

the first most likely to happen is a massive dump. when most countries ban CEX, or crypto, it will make investors panic, and immediately sell their assets. most likely it happened because we could learn from China a few years ago. even 1 country can make bitcoin and altcoin prices fall. it will be even worse, if many countries simultaneously make crypto 'illegal'. some people might just stick with it, and use a DEX or other exchange. however, when crypto is deemed illegal, it will limit the movement of people, and when that announcement happens, I'm pretty sure there will be regulations regarding penalties for that, so I think a lot of people will leave crypto, especially if their knowledge is just an investment.

Despite the fact that decentralized exchanges are developing very quickly and introducing a set of services that were previously inherent only for centralized exchanges, they are still inferior to CEX. But the advantages of decentralization offset such disadvantages and, accordingly, the future belongs to DEX.

Now  DeFi projects are actively developing offering users new tools and opportunities.
It becomes more simple and comfortable to use different DeFi tools and products.

I strongly agree with your opinion, already after the huge support from various governments to accept the use of digital currency, how can we think about banning it again. I think cryptocurrencies are becoming more widespread and centralized exchanges are starting to expand their influence by acquiring licenses from different governments around the world and including more users!!!!I don't think we will see a ban on central exchanges so rest assured

The sad part about it is that DEX projects are developed quickly but never really take off and be consistent. I mean in the defi world we had so much more money and these days we do not have the same amount of money, this should be proof that it is not a long term profitable thing. What CEX has as an advantage is the fact that there is a company and owners that profit and then can use that profit to improve the website.

Binance may not be even making any "profit" right now, the way they spend their revenue like crazy, I am not so sure if they have any money that they have to pay taxes for. This advantage keeps them going, but the DEX ones we see end up releasing, promoting, and then just... there.

Well, sorry to bust your bubble @op, centralized exchanges won't be banned, at least, not the big ones that comply with the laws of the land like binance, coinbase and the likes.
Government need money and more money, and even more money, and sometimes, they don't care how it comes, as long as the money is coming.
To be sincere with you, governments don't have a problem with crypto, why it seems they are so head bent on banning crypto is because they haven't figured a way to tax users yet, as soon as they figure out an effective way of taxing users and holders of crypto, you will see that all this threat and brouhaha of banning crypto will be a thing of the past, their major anger right now is that citizens are moving their fund to crypto to invade tax, once the government of the world figure out a way to effectively tax crypto holders and crypto business owners (this includes centralized exchanges), you will see that crypto will be made legal in many (if not all) countries of the world.

I believe that it is by this parameter that there is no difference between DEX and CEX, since behind each DEX there is a project team that works on the development and maintenance of a decentralized exchange. It is enough to recall such decentralized exchanges as 1inch, Uniswap and Pancakeswap, which regularly delight us with their updates.

For DeFi liquidity is very important. It is necessary to constantly develop a project to offer tools that are really useful and necessary for people to increase the liquidity of DeFi.

If that happens that means all exchange that will be being use would be DEX only, is that what your trying to emphasize dude?
Well, in that case for me it is a good news to all crypto enthusiast, KYC will no longer require for sure, due to it is DEX platform.
But in reality I think it is not possible in my own opinion. 

Now there are so many DeFi projects that it is very difficult to choose what are the best projects.
For DeFi liquidity is important and it is necessary to offer and develop tools that make the use of cryptocurrency more simple and available for all the users.

Liquidity is important for every projects but not only for DeFi. Now the popularity of the DeFi grows because they allow all useful tools that allow users to earn more money.

Of course, the binance makes a profit, otherwise they simply would not function normally, this simply would not make sense. Each type of exchange has its advantages and disadvantages, CEX is convenient because there is good liquidity (in most cases), DEX is good for those who value anonymity, so everyone chooses the best option for himself.

We are going forward and not backwards here, leading countries in economy are now seeing blockchain as the future of money, more transparent than any other means. It would still be intact even if all the countries banned it, some people won't let it go. Crypto currencies are our future and even without those centralized exchange we will manage to move on a decentralized one. Way back it was just etherdelta, fork delta, etc, and it was okay like that and I am not telling centralized is not giving any advantage in the markets but we are fine without them.

The more people use crypto the more it is in demand. Now economical situation in the world is very unstable. The inflation is very big and that is why many people prefer to use cryptocurrency for investment purposes. Just buy crypto and hold it.

Project TXA on the Internet Computer means that we will no longer need centralized exchanges to trade, we can do it all on top of $ICP.

Decentralization is the primary dream of cryptocurrency developers and mainly by Satoshi Nakamoto, just type in Satoshi Bitcointalk in google and you will see your profile and message. We found in their discussions surprising hints of decentralization as a simple transaction could change the world, their messages could be in a holy book (laughs). Anyone remember CryptoBridge(DEX)? Well, it was destined to be better than Binance and why not happen? There are bigger forces that we don't know, but the market will hardly decentralize.

Then why China decided to ban crypto exchanges and miners when it had the opportunity to collect huge profits (taxes)? If China did this, then it's possible other countries will do the same if they see their monetary system (Fiat) being threatened by crypto. It's as simple as that. A crypto world without centralized exchanges would certainly look a lot different than what it is right now. It's likely prices in terms of Fiat will be much lower because institutional investors and other big players will be left out of the game. Decentralized exchanges will take over the industry, but mainstream adoption will be so low that crypto won't be as recognized the same way as it is right now.

If you're into crypto because you believe in its technology, then this wouldn't be much of a concern to you. But most people are into crypto for the money, so they would simply panic when their government takes the approach to ban crypto altogether. What matters is that crypto stays decentralized in order to stand the test of time. As long as it stays that way, there should be nothing to worry about. Just my thoughts ;D

It depends if they're indeed "using it", some are just bagging cryptos and never get to fully utilize it. I can understand that part for people investing in Bitcoin. Some would be entirely for investment purposes like only for the sake of "hodling". Some are using it for currency and of course, some of those people are in the dark web using it for some....stuffs though there are people here in the surface web like me using it also for buying completely normal stuffs.

Now the popularity of DeFi tools increase becuase more and more people use DeFi products.
Thanks DeFi financial services available for many people in the world.

On centralize exchanges very often the funds are blocked that is why many people prefer to use DeFi.
Now DeFi tools are popular and in demand and many people use them.

A lot of DeFi products apper but DeFi protocols need to have liquidity that offer liquidity providers.
To do this it is necessary to offer the best conditions for liquidity providers.

Centralize exchanges have a lot of useful tools that make trade more profitable and in demand.
But all centralize exchanges need to have liquidity to offer their users more opportunity.

I know right now many would like the centralized exchange system that is quite understandable because many of this centralized exchange system because it work hand in hand with what their government want and even help them escape a lot of sanctioning. But trust me centralized exchanges is like a cancer to the crypto-currency space with its values going against the freedom crypto offers to it users and enthusiasts

Centralize exchanges are necessary and in demand. They are constantly developing offering new tools and opportunities for traders to make trade more profitable.

Indeed, there are team members and developers in both centralized and decentralized exchange.
But the difference between them is, withdrawal is automatically done in DEX, while for some CEX the withdrawal is done manually especially when you want to make huge withdrawal.

The first thing is that, in the matter of right and wrong between the parties that the OP mentioned, I personally would never support the wrongs that they overestimate. The fact is that the big countries have always wanted to create an economy that they could control. Due to the conflict between Russia and Ukraine, many people are looking at the market negatively. I cannot emphasize this enough. Do people lack the ability?to bring happiness to many people? Does such control bring lasting value or not? The fight for justice for everything, but what will be our obligations and sense of performance in these areas? Perhaps each person will understand for themselves what they are choosing from these things in life. I do not want to visualize too negatively the problem of that imposition in this space and also hope it will never happen again.

It must be very expensive to trade publicly on blockchain nowadays because with so many transactions making gas build up they need a bigger boost of mining gas consumed in order to get to their destination quickly, but if the government forbids it like this this won't happen either. another possibility is that cryptocurrencies will be able to be transacted offline by sending a file containing a program containing the smart code of bitcoin itself, so the cost is very small, but so complicated for people to understand.

Now investors have a choice what exchange to choose - centralized or decentralized.
The more actively developing cryptocurrency the more tools it offers.

In the early days of cryptocurrencies,  decentralized exchanges were the go to place as most coins didnt have listings on big exchanges...but the issue that was there with a dex had prices which werent in par with what the markets had which meant anybody that did not know of this was either selling for low or buying at a very high price which is something likely to happen in the absence of a centralized exchange.
But thanks to time all these pockets of opportunity have been sealed for less exploitation which is a good thing tbh :).

one that I know is going to be very expensive. transaction fees will increase many times. without a centralized exchange, crypto will suffer a setback. and that will make the trust in crypto decrease. some might think DEX can solve that problem, but be aware that it takes a lot of processing to trade from different blockchains. and it will require a fee, different if we use CEX. and when all CEX is suspended, and crypto becomes illegal this will probably be the worst thing for crypto development.

Of course. There will always be performance bottlenecks in decentralized exchanges due to the way they're designed. But with the introduction of cross-chain interoperability, this no longer becomes an issue. As far as I know, atomic swaps make use of different blockchain networks in order to perform the desired exchange (interoperability). Scalability is the least reason to worry about as long as decentralization prevails in the long run. My guess is that developers will start working hard in order to make DEXs better than ever.

I'm pretty sure people will get used to DEXs once centralized exchanges are banned for good. Adoption for crypto won't be the same, but at least it's better something than nothing. Who knows how the future of crypto/Blockchain tech will look like with ever-increasing regulatory pressure from mainstream governments? Just my thoughts ;D

If states want to attack cryptocurrencies, then it is most likely that they will try to ban or restrict the work of decentralized exchanges. Decentralized exchanges are still registered in some state that will have influence on it. If individual states do not want to do this, then the world powers always have sanctions on such states in reserve.
Centralized exchanges will be forced to cooperate with states and provide them with the necessary information about their customers. Therefore, they are unlikely to be persecuted.

investors and users of service with the reference of token might work on decision as appealing uses with the chance on tasks of exchange as qualifying uses with identification of factors with the demographic as variable of indication to returns with one of service with the dedication as request on recalls as expecting to gains on collection with the unit of valuable currencies following strategics as appealing work on book keeping with the business of the crypto investment of the finance.

I use to be strongly against Centralized exchanges untill the ETH network transaction fees dealt seriously with me. Now I don't mind the kyc of centralized exchanges

I know many people don't like centralized exchanges but they played a vital role in crypto space more than dex exchanges, I know many don't like KYC verification but honestly its for our own good, I prefer centralized exchange more than dex.

Cryptocurrency exchanges offers a lot of profitable tools that can not offer decentralised ones.
That is why a lot of people continue to use centralize exchanges.

I believe that client funds that are on centralized crypto exchanges are in constant danger and can be blocked by the exchange at any time. You can avoid this by switching to decentralized exchanges. The only disadvantage of decentralized exchanges is a small number of instruments, large commissions and slower transactions.

Centralize exchanges can ban the accounts of their users that is why the demand in decentralize exchanges continue to be very high.
Decentralize exchanges available for more the people then centralized one.

Yeah, that is right, the government wouldn’t try to put down centralized exchanges because they know that in one way or the other that they would be gaining from it.

So, as long as it is benefitting them they wouldn’t think of such. They would only wish that they were able to put down the decentralized exchanges, but that wouldn’t be possible for them since all those decentralized exchanges are completely out of their control. That is why in countries where cryptocurrency has been banned, we still continue to see people making use of decentralized exchanges or peer to peer means for their trading of cryptocurrency .

Crypto wouldn't be as popular if exchanges like Binance, Kucoin, Coinbase wasn't here. Decentralized exchanges are cool but we already have seen that the tech isn't advanced enough to replace the human factor. There are still some problems which only a human can solve. Decentralized systems are not perfect, they can get broken in time. Customers are not perfect neither. That's why centralized exchanges attract more customers. People just want to know somebody behind their screen there is a human ready to listen to their problems.

I agree.  CEX may not be the best ingredient for the privacy that is characteristic of crypto, but it does contribute to making crypto popularity richer and more diverse.  For example, how does a newcomer come in simple exposure to crypto - P2P, etc.  They need to have fulcrums and CEX responds well to this part.  But what about the market reaction, crypto risk cannot depend on CEX, much less in the future when bitcoin is in a difficult position with respect to regulatory constraints.  The response of demand will be DEX, although development comes at the expense of a few things, but CEX also has a role to play in transforming that demand.

Now many people do not trust centralize exchanges because they affraid that their funds can be bunned.
DeFi accounts can not be bunned that is why more and more people use them.

Not only centralized exchanges banned the suspicious accounts of users.
Now appear special programs that allow to ban accounts on DeFi exchanges.
Cryptocurrency becomes more controlled.

You do have a point there, mate. Centralized exchanges are the ones who drive the most adoption into crypto/Blockchain tech. They're the first thing people come into when starting their journey in crypto land. Without them, I fail to see how crypto will be massively adopted by (almost) everyone worldwide. Decentralized exchanges will still be around, but their limitations will simply drive people away from crypto.

There is a hybrid exchange called "Waves Exchange" with high-performance order matching/execution, but I'm not sure if it will handle millions of TPS when it reaches widespread adoption worldwide. I'm fine with governments "regulating" crypto/Blockchain tech as long as they don't ban it altogether. Who knows what the future holds for the entire crypto/Blockchain industry? Just my opinion :)

I don’t think that the government would do such, for now. What I’m thinking that they would do is that they are going to implement heavy taxes, as we have seen some countries do. So they might implement heavy taxes on cryptocurrency trading and investment, and even the transactions, like India did.

But, let’s just hope that that wouldn’t be the case, and any tax that they would try to implement would be something that isn’t strict. In a situation where the level of regulation in the cryptocurrency market is tough, it might discourage some investors from the market. So all these things are things that we wouldn’t really hope for.

Centralized exchanges continue to be popular and in demand because they offer people a lot of useful tools that make the work with cryptocurrency more simple and profitable.

Centralized cryptocurrency exchanges now offer a lot of useful tools that make cryptocurrency trading more profitable.
Trading volumes on centralize exchanges continue to increase.

I think it would be safe to say that the future of cryptocurrencies does not depend on centralized exchanges at all. Although many of them hold a lot of weight in the market, they are not as important as most people believe.

It is necessary to know now that the value of cryptocurrencies goes over time and is heading towards mass adoption, crypto, and the latest technological developments. As society follows the times, this is what underlies it in society. And, with mass adoption comes great competition. Remember, there are only so many places where you can spend your money, assuming you are a consumer. You may buy coffee at Starbucks every day, but once Amazon starts selling coffee beans and stores, you'll probably switch to buying from them. It is the same as cryptocurrency. If cryptocurrency is widely accepted by traders worldwide, then why continue to use Fiat exchanges.

In my opinion, think and study many cryptocurrencies that have been widely accepted by traders worldwide, for example: buying hawk host web hosting with Bitcoin, BCH. Accept it or not, this cryptocurrency currently has a strong share in the market, and the price continues to rise because of it. Suppose someday or in the future. More people have started using crypto for their daily purchases. In that case, those who are opposed to what they want to do, like it or not, have to accept such as holding high volumes of high tides will automatically open the entrance of the seawater.

Centralized exchanges offer many different tools for trading to make trading more profitable and in demand.
That is why the trading volumes on centralized exchanges continue to grow.

The more people use centralize exchanges the more popular they become.
A lot depends on the tools that centralize exchanges offer.
Now a lot of financial products appear that make the work with exchanges more profitable.

Centralized exchanges becomes more requlated and contralled.
It means that not all traders can use centralize exchanges and many people prefer to use DeFi.

I think that currencies without centralized exchanges would be like the contracts that were made or are currently made in NFT games and tokens, there are many and it would be a mess because there are decentralized exchanges where you cannot place a limit order, nor a normal order, if not everything is very manual, I think the amount of contracts and confusion for the currencies and the investors would be something impressive.

Centralized exchanges not only offer a better type of security, but apart from this, the largest in the world like Binance are on the order of the day to give the best support as long as you have the KYC passed, the only advantage I see of decentralized exchanges is that you can be more anonymous.

Thanks regulation of cryptocurrency big investors and traders come to the industry.
That is why trading volumes on centralize exchanges continue to grow.

Government has done enough interfering in cryptocurrency and that is what we have seen with Binance. There were financial regulatory bodies that monitored that exchange and others and made sure they complied with checks. That is why Binance later asked its customers to validate and verify their accounts with KYC. I do not think it will get worse than it is to the point of government completely closing down all centralised exchanges. What about countries that have already adopted bitcoin?

Centralize exchanges can offer the tools such can not offer the decentralize exchanges.
Thanks leverage it is possible to make a big profit on trading. That is why centralize exchanges are so popular now.

It is very important to check the trading volumes on centralized exchanges, because liquidity is very important for cryptocurrency exchanges.
Also it is necessary to pay attention to the projects that cryptocurrency exchange offers for traders for profitable trade.

You can certainly be more anonymous using a decentralized exchange. Yet, decentralized exchanges have some limitations that often makes centralized exchanges a better choice for newcomers into crypto. Without centralized exchanges, I don't think crypto will be as widely adopted worldwide as it is right now. A lack of centralized exchanges means that crypto/Blockchain tech is completely illegal to use anywhere in the world. While this is unlikely to happen soon, we should be prepared in case it does.

I wouldn't say centralized exchanges offer a better type of security, since they're easily subject to hacks, theft, and manipulation. Decentralized exchanges can be hacked too, but the risk is lower because you and only you control the keys to your crypto. The industry is just starting to blossom, so we should give it some time to mature in the mainstream world. Just my thoughts ;D

Because on cetralize exchangers accounts of many users are blocked for different purposes many people do not trust centralized exchanges and prefer to use a decentralized one.

Centralized exchanges aren't going anywhere, they will become more regulated though. Going along with your thought exercise though, a smart contract would emerge that integrates non-smart contract blockchains and allows trading, like the internet computer or Flare/Songbird.

without the centralized exchange investors might depends with the customs of methodological individualism as rejecting ideas on presence within the field of collateral presence of egalite investors and
following the distinct level of affirmation investors work on excess with the subjective opinion with the motivation to exit from the previous level of dependence without the decision as occupying the utility and instrumentation of methodological terms of work of modification but
following moral obligation yet there shows of the distinct of limit on level of confirmation as leaving of excessive chance on cumulative numbers of measure while investors being within the egalite severe of field of collateral position among parties within the group with the absent of the centralized exchange to leads on guidance as referring of the level of market efficiencies,

I rechecked the text several times, because I thought that in the current conditions it could be more about a ban on decentralized exchanges, rather than centralized ones. I see no reason for states to ban the operation of centralized exchanges, which, as a general rule, cooperate with them. It is most likely that decentralized exchanges will experience difficulties and the pressure on them from the states will increase.

Probably so. Considering that centralized exchanges provide big taxation benefits to mainstream governments, it's unlikely they'll disappear from the face of the Earth. As long as "money talks", nothing else matters. Unfortunately, centralized exchanges will become more regulated (or strict) due to government pressure. This will bring some hurdles/obstacles crypto/Blockchain tech was meant to avoid in the first place. The more regulations imposed within centralized exchanges, the more the crypto industry will resemble traditional banking.

At least, there are decentralized solutions available. Things would've been worse if crypto was closed source and completely centralized. With an ever-growing number of decentralized exchanges and P2P trading platforms, getting access to crypto without going through KYC is a no-brainer. I'm pretty sure crypto will survive for a long time because of its resiliency. Just my thoughts ;D

For me, centralized Exchanges have many advantages, at least when there is a problem they can solve it, but of course if you have a Completed KYC, the problem I see with decentralized exchanges is that a wrong contract means the total loss of the funds that are deposited, and the bad thing about decentralized exchanges is that most of them surrender at the feet of governments or authorities, that's what I don't like, as is the case with Binance.

Some centralized exchanges have more options to be like this, but in support of any inconvenience they are very fast.

Centralized exchanges often have better performance than decentralized exchanges due to the way they were designed. But they do come with their risks. If there's a government crackdown, the exchange gets hacked, or the owner closes up shop, you can say goodbye to your crypto funds for good (if you left coins on the exchange, of course). With decentralized exchanges, the risk of hacks or theft are practically non-existent. Governments can't shut them down neither, so there's that. What really prevents them from being widely adopted worldwide is their scaling limitations.

With high network load, decentralized exchanges often become slower and expensive to use than their centralized counterparts. If by any chance centralized exchanges cease to exist (which is very unlikely right now), it's likely developers will improve decentralized exchanges for the better. I'm guessing DEXs will rely on off-chain scaling solutions (Layer-Two) to gain performance as comparable as centralized exchanges. As long as people have a choice, nothing else matters. Just my thoughts ;D

I don't think that far because it looks like the government is looking to legalize crypto in several countries in the world, it's proven because some countries have taken taxes from cryptocurrency production. Even though there are some weaknesses of cryptocurrencies, the existence of a supportive government will cover these shortcomings so that it is possible for cryptocurrencies to last for a long time as a commodity investment asset.,

I agree with the review you said because in the country where I live now such a thing has also been implemented so that when there is a cryptocurrency transaction on several local exchanges, the user will be taxed a certain percentage of the transaction, which means the government has agreed to the existence of cryptocurrency in country.

As long as there's a single country supporting crypto/Blockchain tech, centralized exchanges won't be going anywhere soon. I doubt all of the world's governments will turn against crypto since it brings huge taxation benefits in the long term. Decentralized exchanges are good, but they can't outmatch their centralized counterparts in terms of performance and ease-of-use. They'll only remain as an alternative than a replacement of traditional exchanges.

Ultimately, people will get to decide which type of exchange to use for their own benefit. With how far crypto has gone so far, it seems that centralized exchanges will be here to stay for a long, long time. Just my opinion :)