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If major countries around the world decide to reject crypto/Blockchain tech sometime in the future, there's a high probability CEXs (centralized exchanges) will cease to exist. They will shut down their operations as crypto is declared "illegal" for mainstream use. Without an on/off ramp to/from the Fiat and crypto worlds, I wonder how would the industry survive?

Will a world without CEXs mark the end of crypto? I know crypto is decentralized, but the truth is that CEXs provide most of the liquidity of the market. DEXs are "second-hand" options that have their own set of issues. Either mainstream adoption for crypto/Blockchain tech starts to decline, or all the other way around. We've seen how exchanges have been "closing up shop" in the US due to strict regulations. What makes you think other countries will tighten regulations especially when they claim crypto can be used to avoid sanctions?

Your input would be greatly appreciated. Thank you very much. :)

It is impossible to predict the future with certainty, but it is important to note that the potential rejection of crypto/Blockchain technology by major countries does not necessarily mean the end of the industry. While CEXs may face challenges in such a scenario, there are other options available, such as DEXs, which may become more prevalent as the technology continues to develop. Additionally, the decentralized nature of cryptocurrencies means that they can still be used and traded without the need for centralized exchanges. However, it is important for the industry to continue to work towards mainstream adoption and regulatory clarity in order to ensure its long-term viability.

We have no choice but to adopt and make the best out of it.
CEX are being regulated so there’s a higher chance for them to being restricted, so far we are lucky to have countries accepting Bitcoin as a legal tender, at least that could be a safer place for CEX to operate if ever. Having no CEX around can limit people from transacting that much with cryptocurrency, we might be back to a slower era.

There's the probability but I highly doubt it that every country will cease their operations. Those that are too little in their operations are going to be massively adopted by most traders.

US with their too strict rules will make every huge exchange that are not in their favor will just leave the US markets and will just leave the responsbility to their users to come and find them since they're no longer accepted into their country to retain their markets.

I really wouldn't want to live in that world, it doesn't really look like a good one at all and I would rather have them because they do provide a service. Just because some of them were bad, doesn't mean that we should ban the entire system at all, that wouldn't make sense and I wouldn't be really in support of that. I really believe that we shouldn't approach the situation at all, I believe that we should be looking at how to make sure these exchanges are better, or at least figure out which ones are good and which ones are not. I think I have never been part of any exchange that crashed before, there must be a reason for that.

Well we would lose those institutional investors we wanted to get in for so long. At your scenario there wouldn't be instant ban, as laws don't move as quickly we would have some time to prepare. But that prepariing would most likely be massive panic and people would try to escape out before fiat pairs would be banned.

This would lead to lack of liquidity and total price crash. Most likely lots of people would even short it with leverage. I could see we might go back to 2013-2014 prices. As that what was happening before legit investors came. There were few big whales but it was a joke compared to current markets.

In the end we would be coming back to roots. People trading p2p, hard to say how many people would do that but it would be way harder and charts wouldn't really exist as they are now.
Some people would keep trading altcoin pairs (not stable coins tho). This would totally be a nerd and geek game after that. Some might think it would be a step up.

Well, we probably go with the P2P market at least for Bitcoin this is how it was designed to be. Perhaps DEX will thieved or any other groundbreaking idea that will push the market to the masses. Although who knows, the price might be different, could be lower or higher. But it's going to be very difficult for us, although I think that there will be no heavy regulations that we have seen in the last five years. But I guess everything happens for a reason right? CEX is here since Mt. Gox and we have thrived and flourish since then. And I don't see them suddenly closing because government as simply coming after them because they cater for criminals, i.e. using them to avoid sanctions. It's going to be a battle though for many years between government regulators and this exchanges and other crypto services.

It could be a threat to shut down all altcoins but not Bitcoin, due to its decentralized nature of it we can use DEXs.

It could have an impact on the market but if it doesn't it will stop or shut down, still, we have a second option to use DEX.
CEXs are only good for liquidity and DEXs for privacy but as of now let's enjoy using them with their different features.

IMO, regulations can vary widely from country to country, some are embracing crypto to make it legal tender while others banning or have heavy regulation towards crypto.  So the decision could be an eye on the government and it depends on their jurisdictions, we can't generalize them all.

Without crypto the world will still survive but without technology the whole world is now stagnant.  Out of a world population of 8 billion, only about 420 million people use crypto.  Which is an average of 4.2% of the world population.
Crypto won't die without Cex but it will be severely affected. If all the cex were to stop today, maybe bitcoin could drop below $1k.  Because most people will think crypto is a scam then. And if liquidity is leveraged at sex, crypto will face near destruction. But it cannot be said that it will be completely destroyed

The picture you have drawn certainly looks very bad. I’m already so used to the cryptocurrency world that I can’t even imagine how it was before. Of course, state structures want to take control of the government. But with hope I think that they are unlikely to succeed, because the technology has already developed powerfully and large sums are spinning in this area.

CEXs handle most of the market volume in the world. Without them, I don't think it's possible that we'll see huge market movements and huge price increases in crypto. That's the only reason I see why CEXs couldn't go away. People have been so dependent on them for their crypto trading shenanigans that the second it goes away, they won't know what to do with their bags anymore. Apart from that, no other bad thing might happen the way I see it, just that the prices would tumble because there isn't a market maker that facilitates and pools all the inputs and outputs from traders around the world.

It's not all of them will be declared as illegal. Some cex will still be operated as a service in the gray area. The industry will not even survive without cex. This is the truth. Cex is a way for people to deposite and withdrawing their money. The decentralized service will be also able to accept fiat or ramp service. There are so many reasons why a country was tightening the regulation toward crypto like it was being used in illegal activities.

If crypto is illegal then it's the end of crypto world, we can still use Bitcoin and trade it on the decentralized exchange, but it's illegal and we're use Bitcoin just like a criminal in deep web market. 99% altcoins would be vanished, maybe only Bitcoin and Monero still exist since Bitcoin is the top coin and Monero is the most private coin. The good thing it will increase liquidity on decentralized exchange, we will see decentralized exchange is just like an unlicensed centralized exchange.

The world has black and white, right and wrong, legal and illegal activities and all of them are parts of the world. You can not have black without white, right without wrong and so on. I believe legal and illegal activities will continue to exist in societies and no government can ban all illegal things, prevent such occur in their nations completely.

If governments allow gambling, they will allow CEX but maybe with more conditions to have license for CEX operations.

CEXs and DEXs give us more options in cryptocurrency market but not all of us only use CEX or only use DEX. Most of us use CEXs and DEXs in trading and this fact and demand from users provide opportunities for both exchange types to exist in future.

I think we'll find a way, like we always do. For years, crypto has faced challenges from many parties, but we're still here to survive and thrive. Beside, at the beginning, crypto was meant to be decentralized, so it is actually all about P2P trading and, later, DEXs. Although there is no doubt that CEXs played a significant role in the development of crypto, If major countries reject crypto and blockchain technology, there could be a risk of CEXs shutting down their operations, but the crypto industry is not solely dependent on CEXs. With the massive development of crypto and how big the industry became, I think many countries will also think twice before banning it; they probably will regulate it instead. By doing so, CEXs could then adapt to the regulations and survive.

Once government confirm and realizes the idea of bitcoin and crypto of being illegal then definitely will go to being decentralized and merchants and estabkishment that accept crypto will force to shut their door accepting crypto payment. Its really a gamble since some need fiag and how does someone will get fiat money if no one in interested to buy crypto? Some says cex is useless but the truth is we cant change the fact that time is changing and we need it. Some might be comfortable on doing p2p via decentralized way however  what if we dont have buyers anymore of crypto due to that reason?

IMO, if there is no CEX in the crypto market, it can cause difficulties and risks for users, however, the crypto community will have to look for other solutions to support the exchange. exchange and trade cryptocurrencies to ensure transparency and safety. Buying and selling cryptocurrencies will become more difficult and may lead to a lack of liquidity in the market. This can make the value of cryptocurrency vulnerable to major events such as news, announcements from crypto projects, etc.

CEXs,are already a pain in the a** for all the people who have been dealing with crypto since early on when they were created as we all know decentralization was the key point that made Bitcoin so popular together with the public ledger that we know as blockchain to come next.

Now if these exchanges stop their operations I am sure we will see something like immediate conversion service like Shapeshift.io if I remember the service correctly.Then to exchange to money,to FIAT we can use direct exchanges like the one anyone can find on bestchange.com website.Bottom line is we will survive and find a way always.

We're certainly going to lose a lot of current users, that's for sure, but at the same time, I reckon it would create a stable balance since there wouldn't be much influx of new users anymore. At the same time though, its usability will be severely limited since it'd only be accepted by fellow crypto users, which I do hope would be countered by the creation of a solid network for fellow crypto users. Kind of like a hub, an online hub of sorts. I'd say there's a lot more cons than pros in general though.

On a very positive note though, we can finally see the stop of the creation of thousands of shitcoins every day!

Cryptocurrencies survived without CEX, but I doubt CEX will survive without cryptocurrencies. What will they trade? Nothing.
Oh, and survive means it exists even though the value was low just like Bitcoin and Ethereum prices back when all we can use was the DEX.

One of the popular exchanges may have closed but the value remains, actually better because the value of Bitcoin suddenly rose.
That should mean something, it doesn't really rely on the massive amount of CEX that had been opening, it just needs one good exchange and another for competition and it will still survive or increase its market price.
I know the thread might be because of Binance being sued but I doubt they can take them down easily.

CEX helps to give more liquidity to most of the cryptocurrencies out there but the only problem is the regulations and restrictions of the world government against it. we just need to be thankful that despite all of this, some countries won't ban it as long as they pay the amount of taxes that they need to pay in that country. That alone is huge progress compared to past years' experience with bitcoins and altcoins. Also, some big companies are already putting some effort into innovating their services to adopt cryptocurrencies as their accepted and offered payment. To be honest, it's hard to think at least for a newbie like me how it would be if there will be no CEX anymore today.

Although this is an unlikely scenario, but something tells me that centralized services will always be popular, whatever the weather on the crypto market. People themselves are very often lazy and do not want to manage their assets themselves, do not want to learn the basics of decentralization, it is easier for them to trust some third party to quickly solve all their problems and to make cryptocurrency transfer operations as easy and convenient as possible. People always choose convenience over security, otherwise centralized services would have disappeared long ago.

What way? There is still DEX, hellow? And DEX was in fact the best and should be use the most by people because this symbolizes the true purpose of cryptos not CEX as it pushes centralization which are opposed to the main objective of cryptos. CEX will only be affected if it was established on the same country who banned crypto but if not then they can run fine though they will only remove the banned countries from their supported list.

It can still affect their income. Some countries don't really care about the achievement of crypto or if how big it was already but they only think about themselves. They will still ban cryptos no matter what.

This is incredibly unlikely to happen, even if most countries around the world were to ban cryptocurrencies and they went against centralized exchanges, there will always be a few countries out there which will see this as an opportunity they can use to make a lot of money and pass very favorable laws towards cryptocurrencies and centralized exchanges, and in that case centralized exchanges like binance will just move their operations there.

As long as the DEX has a big reputation, it will be still the last longer But, I don't think this will happen at least in this era, because CEX still becomes one of the most used exchanges or platforms to trust. Although it has some down sides. but this still be a good choice with high reputation. Moreover, in local exchanges, they must be the ones that are regulated under the law of the government in the country and this becomes the exchanges that are trusted so much because of registered in the country. But once more, CEX may be like banks, it is centralized and sometimes, we need the DEX for more privacy. SO, many people are also using DEXs for transactions again. I think both uses of CEX and DEX have its own advantages and disadvantages. That is why if someday CEX is no longer operated, I am sure that people will switch to DEX that has high reputation in order to choose more secure transactions. 

the volume and market capitalization definitely aren't gonna be this big, these cexes always give convenience for those that just want to invest, like majority of people, we just wanna invest and thats it, these cexes are already good enough for that, meanwhile with dexes you could see their are lacking the volume, there's reason many thinks cexes better but I guess everyone have their own preference.

Centralized exchanges are one of the biggest contributors to the cryptocurrency market. But without centralized exchanges, crypto trading would be decentralized, which could have several implications for the industry. For trading and investing in cryptocurrencies, the ecosystem will become more experimental and possibly more flexible.

Institutional investors/VCs are the ones keeping the crypto market afloat. Without CEXs, they will simply go away. This means that most of the money being poured into crypto assets right now, will vanish in an instant. Bitcoin will decline massively in price, as well as, altcoins. There will still be a way to trade crypto (P2P, DEX, etc), but I doubt the majority of the people will do the switch when such solutions aren't as user-friendly as an ordinary CEX.

At least, truly-decentralized cryptocurrencies won't be going anywhere soon. The odds of a "full blanket ban" are slim, so there should be no reason to worry about CEXs disappearing anytime soon. Maybe restrictive countries like the US, China, and Russia will come to their senses soon? Just my thoughts ;D

Total trading volume on centralized exchanges is bigger than total trading volume on decentralized exchanges. However, they won't kill each other but will exist together. People will move their funds from CEXs to DEXs and with fear of losing money on CEXs by blackswan events, they always have reasons to keep part of their funds on self-custodial wallets which are available to use anytime on DEXs.

The USA. tries to restricts as much as possible against cryptocurrency companies, banks support cryptocurrencies as they are reviving Operation Choke Point (https://beincrypto.com/operation-choke-point-2-federal-governments-ploy-snuff-crypto/) after its previous failure enforcement in Obama time.

I don't believe US. congress and US. citizens will allow their government to ban cryptocurrency completely. That is a free nation and the voice of their citizens has its power.

The cryptocurrency market is still young and very small (in its total marketcap) compares to traditional markets. I am sure if no serious regulations like you imagined happen, more institutional investors will join this market. Their new capital flow pours into this market will help it soars a lot in future.

It is very true that CEX has a very important role in the growth of crypto today. the fall of CEX will do fatal damage to crypto, in fact most of the public's trust may be reduced if CEX has been deemed illegal by the government. this will probably bring about the collapse of the crypto empire.
However, if crypto survives, then DEX will be the first choice in exchanges. besides that, P2P can also be an option, but it takes a lot of trust to make large transactions. The scenario I'm thinking of is, DEXs might be vying for the trust of crypto users and trying to replace CEXs. but still that big losses for crypto will still occur, especially those who focus on trading or futures on CEX, they will definitely lose faith in using crypto.

Even if regulations become stricter, I believe it's crucial to protect and increase the value of our crypto assets. That's why I rely on XGo's wallet, which offers daily interest on my assets with no charges.

While it's true that the crypto world would still exist without centralized exchanges (CEX), the lack of government support could impact the future growth potential of cryptocurrency as an investment. Evading government regulations and expecting complete anonymity is not a realistic expectation, as most cryptocurrencies have become centralized in some way. Governments are also working to regulate the crypto market, which could impact the anonymity of certain cryptocurrencies.

Ultimately, cryptocurrency has become an alternative currency that uses decentralized ledger technology, but it's important to be aware of the evolving regulatory landscape and the potential impact on investments.

People who shout out loud that crypto promotes anonymity have no idea what is happening in the world right now. This is because anonymity can only be achieved if you do not convert your Bitcoin into fiat.

If centralized cryptocurrency exchanges cease to exist, this may lead to a decrease in liquidity in the cryptocurrency market and complicate the ability to exchange between fiat and cryptocurrency funds. This can reduce the demand for cryptocurrency and reduce its value. However, the cryptocurrency was created as a decentralized system, so the existence of centralized exchanges is not necessary for its functioning.
Moreover, there may be more innovative and secure ways to exchange cryptocurrencies between people, such as decentralized exchanges (DEX) or other technologies that allow the exchange of cryptocurrencies directly without the participation of centralized exchanges.

This is not an option because the authorities need the CEX more than us.
It's a great way to keep records  on who's doing what, who's got what, and the entire ecosystem in general.

Whether it's related to taxes, fraud, scams, money laundering, terrorist financing, and other reasons, governments have a strong interest in seeing CEX continue to be used extensively.

As long as there are CEX, regulations and laws should not be too unfavorable to cryptos in general. I'm convinced that if 90% of crypto exchanges were made via anonymous P2P, the laws and regulations would be much more intransigent and difficult for crypto users.

Personally, I would love to have a larger share of P2P in the traded volumes of the crypto ecosystem, but it doesn't seem to me to be really possible, most markets are now regulated and P2P is only a very small part of the exchanges. People seems to prefer to use big CEXs than Bisq

In some countries regulations are very strict and cryptocurrency is banned. But still there people are using crypto because crypto space is anonymous. However, without CEXs, it will be difficult for the crypto industry to survive. But I think crypto lovers will surely find some new way to keep it alive.
I think crypto will gain more acceptance in future so no need to think negative.

In the current context to bring this up, I really see a lot of things that can happen in the market. It is possible that the market will no longer be viewed positively for reasons of legal barriers, or it will be a truly decentralized environment for the economy when the market exists in a way. independent and not controlled by any other organization.
However, going back to the previous history when CEXs were not popular, how do we view this market, I am sure there are not many people willing to buy and sell them and find out what it is.

I just believe the market can do without central exchanges and that's because decentralized exchange has been becoming popular recently and this started after the Defi trends started becoming more popular.

The overall volume in the market will drop but decentralized exchanging will gain more attention and developers will start competing with themselves to develop the best decentralized exchange that'll be very convenient to use.

You might think the exile of centralized exchange will be bad for the market but it might be the other way round which is, it might just be what the market needed to build more a decentralized community.

Although it's true that crypto can survive without centralized exchanges (CEX) and regulation, widespread adoption may be hindered without proper oversight. The lack of regulation could lead to a perception of crypto as a scam among the general public, which could potentially limit its growth. Moreover, investment is crucial for the growth of crypto as it reduces supply and increases demand, driving up the price.

If there is no more centralized exchange exist then more decentralized exchanges will pop up and the liquidity will shift as well but the problem towards the complete shifting to decentralized trading platforms will clog the blockchain so the fee will be so high which is somewhat similar to withdrawal fee of an centralized exchange. But the crypto won't disappear that easy since its already a huge market almost a trillion dollar industry if I am not wrong so it can't be taken down like that.

You do have a point there, mate. It wouldn't make sense to ban CEXs, especially when they serve as a means for governments to track and trace crypto users. They can easily enforce the rule of law through a centralized exchange, than the Blockchain itself. While Bitcoin and most other cryptocurrencies are transparent by design, there's no direct link between an individual's identity to the transaction itself (unless they do some digging on the Blockchain itself). With CEXs requiring KYC, governments can achieve peace of mind in getting the info thwy want. I think regulations will become stricter over time, but not to a point where they will ban CEXs completely from the "face of the Earth". No one can predict the future, so we can only hope for the best. Just my opinion :)

The decentralized nature of the Blockchain technology means that it can continue to exist and thrive outside of traditional institutions and systems.
it is also possible that regulations may evolve to accommodate the use of crypto and blockchain technology rather than outright rejection.
 It is important for the industry to work with regulators to establish guidelines and standards that can facilitate the integration of crypto and blockchain technology into the mainstream economy.

Additionally, while centralized exchanges currently provide the majority of liquidity in the market, there are also decentralized exchanges and other alternative liquidity sources that can provide support. As the industry continues to evolve and mature, it is likely that we will see new innovations emerge to address these challenges.

Overall, while there are certainly risks and challenges associated with the potential rejection of crypto and blockchain technology by major countries, it is important to remember that the industry is still in its early stages and has a lot of room for growth and development

honestly i'd say these cex are the one that contributes to giving education towards many of the newer users, they are willing to spend money in educating at how investments work etc, in which I think is the reason we could get this far, therefore crypto world without centralized exchange would be drastically different than it is nowadays.

the situation without CEXs is hard for the crypto community, but if that will happen, definitely, the market will evolve into something people will appreciate also. it is not the case that we don't have choice but maybe, something innovative will come up. i don't think crypto people will just give up to what we have right now.

I think regulation would definitely allow the crypto world to grow because it opens the door for so much more money. CEX being so legit in so many nations matter because of this, for example Coinbase is so legit that they literally had an IPO and their stock is traded on the market, that means SEC is all over them for every single cent, and that means they are as legit as they can get, there is absolutely not a single cent that is illegal in their books, and when people now this, buying bitcoin there feels a lot better.

Even one step on wrong direction would make them lose tens of millions of dollars in fines, so they have to operate it honestly and as well as it can be.

The benefits are highly overweighting the troubles of it. I think there are governments and all that trying to take control over these companies, not in a CEO type of way, not in a lets take control of it and run it ourselves type of way, but basically be under their wings and do not go out of their way and just follow it, like whatever they told the company to do, type of way.

But, since crypto is a decentralized thing and exchanges can be run from anywhere around the world, they fail to do that. Which is why I believe that it is not going to be as easy as people think it could be. Hence, exchanges will continue to be freely used whenever we want to.

The only exchabges than "can be run from anywhere around the world" are decentralized ones. Centralized ones, on the other hand, can be easily shut down or seized by mainstream governments. These entities can directly enforce the rule of law on a CEX because there's someone behind it to hold accountable for his/her actions. In other words, there's a middleman that's in-charge of the CEX.

While I don't think every CEX in the world will disappear, regulations will increase to a point where only a "small few" will remain on the industry. I wouldn't worry about this as long as crypto/Blockchain tech remains decentralized and censorship-resistant. Who knows if big names like Binance and Coinbase will survive in the future? Just my opinion :)

As you mentioned, centralized exchanges now provide most of the liquidity of the cryptocurrency market. However, using centralized exchanges also carries risks, including the risk of loss of safety and security, and the possibility of being regulated or shut down by governments. A world without a centralized exchange (CEX) is not necessarily the end of cryptocurrencies. However, it can cause some difficulties for the liquidity and trading of cryptocurrencies. But I can speculate more about new things coming out and changing people's usage behavior, and if the government really takes the positive side of this industry seriously, then whether CEX or DEX just as a means of connection.

We also need to remember that when people say CEX, they do not mean just binance or coinbase, they also mean the one that has less than 20 million volume in the website as well. That alone is a very scary situation and should be avoided as much as possible. I know that it is not going to be that simple, but it should be reminded to everyone who thinks that those CEX's are trustworthy.

I am sorry but a place with just 20 million or less volume can't make enough from trading profits to just pay for a security specialist let alone anything else. They cost as much as 10-20k per month if you hire someone who is good, and I mean really good. And any place that sees that as not important, should be avoided by all means.

Crypto adoption is happening rapidly and I think there is a very little chance to be restricted crypto worldwide. Either Crypto will be more popular and Cex exchanges will be more trusted in future. If accidentally Cex exchanges exits then Dex exchanges should develop more by adding good features otherwise it will be a very backdated experience to continue with only dex exchanges.

Assuming that somehow centralized exchanges were banned all over the world then this will be without a doubt a very strong blow against this market, as people are simply too accustomed to use the services centralized exchanges provide, and while decentralized exchanges could provide some volume to this market it would not be enough, and with this in mind I think a dramatic decrease on the price of all coins could follow and create a new crypto winter.

If we have the option to stop CEX from collapsing, I know we have to do it. But given that case, therefore, we leave no option but to use DEX. Should we think it was worrying, I guess not.
The crypto world without Centralized remains strong, it might cause a huge impact on the market but never I think it ended as people will start using decentralized exchanges as well. In fact, not all traders and investors are using CEXs. And despite this speculated scenario, still crypto remains legal unless is declared illegal in a particular place or country.

This I can envision, but what happens after that?

Will people stop using crypto anymore?

And I think not, even though the crypto winter may be long, but I understand the potential this field brings, but the current regulatory hurdles only make this market stronger, not the end.

the development of the DEX exchange has also been quite rapid and more and more features are being provided. In fact, many new blockchains are emerging with various DEXs supporting them. CEX may still be needed to bridge the gap between crypto and fiat money, because everyone still needs fiat. The crypto world without CEX still doesn't seem like it will happen, CEX are getting serious attention from the government and will be supported if they continue to pay taxes regularly. Like it or not CEX is still needed.

If you ban CEX worldwide, crypto it will still usable peer 2 peer. But of course you'll kill 100% of the crypto using public ledger.

And privacy coin will trive, Monero will become the new BTC, Dero the new Ethereum and that's it the Defi and NFT will still be there but they'll be running on Dero instead of Ethereum. So banning public crypto is a lose for government because they'll lose the traceability but crypto will be still here protecting people from government tyranny.

The most likely outcome is that we will simply adapt, when I first became part of this market, centralized exchanges were already a thing, however I made some peer to peer trades back in the day and that is how I got my first coins, so for a time there will be a lot of confusion about how to keep buying and selling our cryptocurrencies, but once people realize centralized exchanges will not comeback then a great deal of effort will be put forward to increase the appeal of decentralized exchanges.

yes, but the impact will still be severe. we don't know what regulations will be in the future regarding crypto, however, until now the government also seems to be benefiting from the use of crypto, that's why there are still very many legal CEX companies, even though it's quite heavy because of the large amount of FUD. However, I also think that if that does happen, then DEX will be the only option we have. and at worst, a large price drop will occur in crypto.

Is there any coin can't be send via P2P? that's really a shitcoin. Public ledger is just a public ledger, where anyone can see address, transaction, balance and other public information.

Nah Monero is Monero and it will not replace Bitcoin because both of them are different, you can't track Monero transaction in a public ledger. Government can ask the centralized coin CEO to give them access, so they can still track the coins without CEX. But for decentralized coin, the government don't have any way.

    -   At this time, it is the US that is doing a bit of pressuring the CEX platforms located in their territory. If that's the case, the CEXs that closed there will for sure move to a country where they can operate.

Also, even if CEX disappears, there are still DEXs connected to P2P gateway payment and one of them as far as I know is Bitcoin.global and other DEXs in this field of business.

I agree, I was part of that period where we barely had any exchanges, just a few, and during that time there was none in my nation for locally doing it. So I did some peer to peer anyway, and these days we could go back to that if we need to.

Regular crypto trades within the market could be done by decentralized exchanges that is fine and there is nothing to change there, it would be great for DeFi world and most high name projects there like uniswap or pancakeswap would go up a lot. However, if we want to talk about how we can turn our fiat into crypto or vice versa, that would happen with p2p trading and there are websites for that too like localbitcoins if it still exists. That's what we will go back to and still be fine.

That's certainly true, mate. Crypto asset prices will decline, as institutional investors and VCs will no longer be in the game. The vast majority of people worldwide, wouldn't want to use something that's "outlawed" by the government. DEXs might be a solution against government censorship, but they're not as good as their centralized counterparts in terms of liquidity and user experience.

While the odds of CEXs becoming extinct in the future are slim, we should be prepared for the worst especially when most governments are about to launch CBDCs of their own. Who knows how would crypto fare in the future once CBDCs take over the world? Just my thoughts ;D

Can't imagine what happen cryptocurrency without CEXs (centralized exchanges) and how possibility withdrawing crypto assets trough to the bank, so far CEXs not only as exchange market or place for trading and investing only but also have helped us to withdrawing crypto fund to Bank account as final goal for trader or investor. I believe with Dapp exchange but can't help us how to withdraw crypto fund to the Bank account as soon possible with CEXs.

Indeed have option with manually convert but seems need to pay higher fees than withdrawing directly from CEXs exchange account to the bank and there are huge limit withdrawing. Beside with CEXs make investor more excited for trading than Dapp exchange.

Sure, but without fiat ramps (aka cexes) it would mean that people would need to trade and use cryptocurrencies without trading them to fiat. If this would happen in a larger scale it would most likely mean fall of the whole fiat system. Nations would break apart and it wouldn't happen in peace. I don't see that happening either.

I was aswering to hypotetical question about CEXes being banned. That would automatically mean fiat pairs being banned, meaning loss of liquidity and lack of fiat ramp.

I don't have clear opinion about US politics but i got the sense that everyone in there wants to weed out corruption and of they want to prevent money laundering and corruption, forced auditability and control of money are pretty much only ways to do it. US citizens doesn't quite seem to understand what consequences comes with the concept of being "free".

I don't think that will happen even if they launch their own CBDC. Cryptocurrencies are now more like a financial market, a commodity, than a currency to compete with their CBDCs. Moreover, banning cryptocurrencies does not bring them any benefit at all and causes a huge loss of tax revenue.

If you notice the lawsuits, the recent US fines against exchanges are also civil lawsuits, which means they just want us to comply with their rules. They have no intention of criminal prosecution, resulting in a complete ban on us.

We are now in an era with very advanced technology, every individual is competing to show their respective skills, I believe even though CEX doesn't exist, there will be lots of dex and dapps that can meet the needs of every individual who invests or just trades crypto.

But cryptocurrency can be used as a currency, just like how two countries have been accept Bitcoin as a legal tender. Cryptocurrency can be used to evade from paying tax, you should think not all people who hold cryptocurrency want to report their holdings, how much the profit they make to tax institution.

Right now you saw SEC only want exchanges to follow their rules, but you don't know the future what they will do with cryptocurrency.

Maybe the crypto industry will be greatly affected by the restricted access to CEX, but that doesn't mean that CEX won't be able to operate, because they can operate and provide their services to users globally, but it's just that their risk of being criminalized is quite big and also that means no there are regulations on the platform so that all risks will be much greater, such as regarding user assets and KYC.

The government has more to lose by banning crypto completely than regulating it. China and Russia are already losing large tax revenues by prohibiting the use of crypto assets within the region. I think they will change their stance in the future, as crypto/Blockchain tech continues to grow in popularity. CEXs are the perfect "tool" for governments to collect a crypto user's personal information for taxation purposes or simply to view his/her trades for any suspicious activity. Without CEXs, governments will have no easy way to catch malicious actors on-chain. It will need to do more "digging" to get what they want. Don't expect the industry to move away from CEXs after the FTX implosion. CEXs will only become bigger and stronger than ever.

While DEXs are an alternative, they're still far from perfect. At least, it's better something than nothing. As long as you don't leave all of your coins in an exchange, there should be nothing to worry about. Just my opinion :)

The problem with DEX is trust, I mean if the founder is known it won't be "the true DEX" as they will get pressured by government to comply with the regulation. Meanwhile, if the dev is anon, they can rug pull on us...

The tech is also a problem as there's no tech that is government-resistant or outside of the government boundary. If the DEX is big enough we can expect some raid and jail time. Don't forget that exchanges need banking support for in-out fiat, which means compliance with the regulation.

As much as we want to push DEX & anonymous ideology, I can't see it happening anytime soon.

And if the developer is unknown, it may happen like with SushiSwap, which pulled some liquidity and decided to leave the project. Now, in 2023, having an anonymous funder only causes distrust in the project and unnecessary suspicion, rather than any decentralization. Although regulated DEXs are already an oxymoron :D I remember Uniswap once tried to impose sanctions against some countries, albeit at the UI level. That certainly shouldn't happen on decentralized sites.

In my opinion, without CEX in the crypto world, the crypto market will still be fine, even in my opinion, DEX is better than CEX,
especially about the many bankrupt CEX like FTX that makes everyone afraid, even Binance is also hit by FUD every day.

Isn't IPFS and ENS censorship-resistant? I think it's possible to build a DEX using these technologies alone for complete peace of mind. The front-end interface of the exchange would be hosted on IPFS, while the domain name would be pointed to ENS. But I see what you mean. The vast majority of DEX projects are built using centralized infrastructure, making it easy for governments to shut them down at will. That, and also the fact that most projects have exposed the identities of their developer team.

I know that something made by an anonymous person would raise a red flag, but we could say the same about Bitcoin whose creator is yet to be revealed. If people trust BTC even though no one knows who created it, then they can trust a truly-decentralized exchange built by an anonymous person or group of anonymous individuals. Let's see how governments' efforts to stop the revolution will turn out to be once they hit the wall of decentralization and censorship resistance. Either they join crypto/Blockchain tech or they'll get left behind in the dust. Just my opinion :)

ut the thing is, majority of liquidity are available in cex in which in this case if they didn't exist i doubt we gonna have this much market capitalization, even though many are frowning upon cex since many are collapsing it undenied that cex has been the one that's bringing the massive liquidity. so I guess if crypto world is without these platform, they'd certainly lost so many liquid, meanwhile the dexes known for their hard to find liquidity that caused many to switch over cexes, but i also think it's fair enough that some people think cryptocurrency better off without cexes and only need dexes since many might be traumatic against the cexes in general mainly because they've lost massive fortune in recent ftx incident.

Experience over the past years is terrible, some trader's have even vowed not to have anything to do with CEXs because they lost most of their funds to scams. FTX dump make the whole crypto universe to generate strong doubt towards believing that CEXs is a better project, most trader's condemned it because they're afraid that Binance will do the same thing, probably not now, but in the future. CEX do play a key role in the aspect of the trader's priority because they're third party that linked one with alternatives. They're easily managed and every trader have full access to the exchange without any form of superiority, everyone is treated equal.