What if Most Centralized Exchanges are Banned?

[legendbtc]

Then we'd go fully P2P. That's the way to go and there won't be any issues with that if most of the traders and investors of this community will just have to trade through P2P platforms. And I guess that the emergence of decentralized exchanges will come but we might see some adoption through those dexes having Bitcoin and I think they will be able to do that.

One thing we forgot was that the satoshi that created bitcoin was a peer-to-peer currency, meaning it was not dependent on any centralized platform in the early days. Having centralized exchanges will help more people have the opportunity to access bitcoin more easily, but that is not the factor that helps bitcoin survive. So whether there is a centralized exchange or not is not an issue for bitcoin.

Yeah, almost forgot that but I think that OP and the others priority is to convert it into fiat and that's the concern IMO. But then, you're right that even without them, Bitcoin will remain Bitcoin and it can be continuously be used for transactions even without the usage or existence of these centralized exchanges. Like what's the historical purchase of Bitcoin pizza by laszlo, that's one perfect example but I guess that as year passes by, the narrative changes a lot.

But honestly, I don't think the government will ban all centralized exchanges because they are relying on them to control and spy on us. As I said, it is only the Nigerian government, there is no second country that legalizes cryptocurrencies but wants to ban centralized exchanges. Many governments are starting to issue cryptocurrency regulations, and they require exchanges that want to continue operating in their countries to comply with the regulations and cooperate with them. In the future, many governments will even offer their own cryptocurrency exchanges through banks if the demand for it becomes more widespread and it will be easier for them to tax us. And I believe that the Nigerian government will soon reach an agreement with binance or other exchanges because they will not want to lose the huge tax revenue from there.

[Z-tight]

What will happen to Bitcoin and other cryptocurrencies if most countries ban centralized exchanges? What steps are the crypto enthusiasts taking to preempt this?

The government are not really against centralized exchanges, they can get any information they want from them and they can use them to confiscate people's money, they'll only have issues with them if they are non-compliant, especially with kyc requirements. It is not possible for most countries to ban centralized exchanges, what they are against is privacy solutions, they enjoy centralization. However, if we agree that this can happen, then if you've not been trading p2p, you'll have to start doing it.

[Dr.Bitcoin_Strange]

Well, Bitcoin has had a lot of traction since its existence, and it has become so popular that it cannot be stopped by any factor except a global pandemic, and perhaps all the centralized exchanges cannot be banned to affect Bitcoin. There are a lot of centralized exchanges in the crypto world, and they can be used in the majority of countries where Bitcoin is not banned. There are also some decentralized exchanges for Bitcoin, and you can also trade Bitcoin via direct human-to-human p2p trading.

[Wapfika]

Some countries already blame crypto for their economic woes. We saw this with the harassment of some crypto executives and even jail terms for some. What will happen to Bitcoin and other cryptocurrencies if most countries ban centralized exchanges? What steps are the crypto enthusiasts taking to preempt this?

The only way to regulate cryptocurrency is through centralized exchange. It’s very dumb for the government to completely banned it since Bitcoin is decentralized and can’t be regulated on its own.

There’s also P2P and DEX exchange which can offer trading without relying through the centralized exchange. Bitcoin will continue to be traded as long as there’s a demand since it’s main use is for Peer to Peer transaction and not through 3rd party like Exchange. We are just no choice on using CEX since it offers instant liquidity to trade our asset immediately.

[royalfestus]

I believe that blaming centralized exchanges for attacks is often driven by a desire to share in their profits. Although it's uncomfortable to admit, all exchanges, to some extent, are involved in dubious money laundering activities. They make substantial profits from laundering and market manipulation, and as long as they pay their dues to regulators, they'll continue to operate without major issues. Decentralized exchanges have their own advantages, but they can't dominate the market because it's too large for them to handle alone.

[BlackHatCoiner]

Well, Bitcoin has had a lot of traction since its existence, and it has become so popular that it cannot be stopped by any factor except a global pandemic

We've already had a global pandemic. Bitcoin, not only continued working, but became stronger than ever, against all odds. And that's because in times like these, when faith in the government starts to decline, it makes sense to become interested in Bitcoin.

Bitcoin will continue to be traded as long as there’s a demand since it’s main use is for Peer to Peer transaction and not through 3rd party like Exchange.

The only way to regulate cryptocurrency is through centralized exchange.

So, the only way to regulate cryptocurrency is by banning the entities which are not supposed to exist in the first place. Such sense, wow! 

[examplens]

Some countries already blame crypto for their economic woes. We saw this with the harassment of some crypto executives and even jail terms for some. What will happen to Bitcoin and other cryptocurrencies if most countries ban centralized exchanges?

Most of the countries that blame crypto for anything in their economy have a very poor economy. They certainly do not have significant influence on a global level, so shutting down crypto is a decision that will only harm them.

What steps are the crypto enthusiasts taking to preempt this?

They have to change the government that governs their country and choose one that is more modern and more open-minded

[albon]

Some countries already blame crypto for their economic woes. We saw this with the harassment of some crypto executives and even jail terms for some. What will happen to Bitcoin and other cryptocurrencies if most countries ban centralized exchanges? What steps are the crypto enthusiasts taking to preempt this?

It is really strange to blame cryptocurrencies and make them the primary cause of this country’s economic problems. Crypto contributes to financial inclusion, provides increased access, decentralization, and privacy, improves the efficiency and costs of transactions, and is an alternative solution to traditional financial systems. The economic problems that this country suffers from are the result of other causes, and cryptocurrencies have nothing to do with them. Many countries have legalized crypto, and their economies have only been positively affected.

I do not think countries can ban CEX because it is already compatible with the regulatory and legal regulations in these countries, operates its services legally, and does not conflict with AML or KYC policies. And if these platforms are licensed in the country, I don't think they can be banned. Even if we assume that this happens, Bitcoin and some altcoins appeared before the launch of these centralized platforms. Then, through P2P and decentralized platforms, things will be finer and better than CEX, which conflicts with the decentralization of cryptocurrencies.

[EarnOnVictor]

Some countries already blame crypto for their economic woes. We saw this with the harassment of some crypto executives and even jail terms for some. What will happen to Bitcoin and other cryptocurrencies if most countries ban centralized exchanges? What steps are the crypto enthusiasts taking to preempt this?

I suppose you are referring to Nigeria, that's the only country I know that has all the pictures you painted above. Well, the Nigerian government acted immaturely and they've always been in the business of blaming everything possible for their woes, they like to shift the blame instead of finding the right and lasting solution.

With their illegal detention of the Binance executive, they've now dropped the charges against them due to the intervention of the US government because the detention is baseless and can only happen in Nigeria. For these, I don't see it as any basis to fear the clamp down on crypto exchanges.

As for the question, it is no threat if countries of the world ban CEX, people will of course turn to DEX. Also, there will be other means to transact in Bitcoin like in Telegram and on other social media. But one needs to be very careful in these extra arrangements.

[Slow death]

some African countries where the dictatorship is being even more radical and which has been against bitcoin and exchanges. but fortunately in my country, despite being an African country, the government has encouraged people to buy cryptocurrencies on international exchanges, in my country cryptocurrencies are very welcome. With the advancement that cryptocurrencies are having in terms of use in the world, it is now unthinkable and impossible for governments, all of them, to ban cryptocurrencies, which can and is happening and that governments are demanding exchanges to charge kyc

nowadays, even to use an exchange listed on the best exchange, the person needs to go through a very complicated kyc: ID, proof of address, photo holding ID, face ID, and so many things that the person needs to do at the time of kyc that is tiring. but this clearly shows that exchanges are complying with government recommendations and that therefore exchanges will not be banned, they will operate for many long years, even in these few countries that have banned exchanges and bitcoin, they will eventually have to change their stance . because cryptocurrencies will not disappear, on the contrary, every year more cryptocurrencies are increasing

[Alpha Marine]

Centralised exchanges and the main way government keeps tracts of Bitcoin and crypto holders and trader, so I doubt it it will ever be banned, it will only be more heavily regulated, more than itbiw already, but it won't be banned.
But anyway, if all exchanges are banned, bitcoin would still be here and strong. I can't say what would happen to all other cryptocurrencies, but I know bitcoin would still be here. Some altcoins too will be here, but most of them will b forgotten because one thing that really promotes altcoins Re CEX, especially when they're listed on various exchanges.

Bitcoin might see a fast dip in price after CEX are banned, but it would be temporary and for a short period, with time, it would recover and it would be like nothing happened. People will adapt and find other decentralised means to trade bitcoin.

[tabas]

Centralised exchanges and the main way government keeps tracts of Bitcoin and crypto holders and trader, so I doubt it it will ever be banned, it will only be more heavily regulated, more than itbiw already, but it won't be banned.

While that's true that these centralized exchanges play a vital role in the tracking of their users as per local governments' way of asking for data through them. They can release and send it to the government if they ask for it even without prior notice to the users. However, there are some countries that really don't favor exchanges even if they are centralized although the number of these countries are really few.

But anyway, if all exchanges are banned, bitcoin would still be here and strong. I can't say what would happen to all other cryptocurrencies, but I know bitcoin would still be here. Some altcoins too will be here, but most of them will b forgotten because one thing that really promotes altcoins Re CEX, especially when they're listed on various exchanges.

Bitcoin might see a fast dip in price after CEX are banned, but it would be temporary and for a short period, with time, it would recover and it would be like nothing happened. People will adapt and find other decentralised means to trade bitcoin.

You're right, that's what is about to happen when most cexes will be banned globally. But as for this temporal sensation, we will definitely see the effect of it for the crypto market and mainly on Bitcoin's price. Anyway, everyone will still find a way to trade from crypto to fiat whether it's with OTC, p2p or any other ways.

[virasog]

Some countries already blame crypto for their economic woes. We saw this with the harassment of some crypto executives and even jail terms for some. What will happen to Bitcoin and other cryptocurrencies if most countries ban centralized exchanges? What steps are the crypto enthusiasts taking to preempt this?

This is not going to happen that all the centralized exchanges get banned across the Globe. Yes, the ban can be limited to some countries or regions but saying that all the centralized exchanges will end up operations does not seem a realistic argument.

Anyways for the sake of argument, even if we believe that this comes true and all the exchanges are banned, the crypto trading will still be alive through decentralized exchanges. Right now, we do not find much liquidity in decentralized exchanges but in this scenario, we may see a lot of funds being moved from centralized to decentralized exchanges, thus making it a perfect environment for the crypto traders.

We all want such exchanges to grow but these days ease and liquidity is more at centralized exchanges and traders do not move to the decentralized ones. Once they have no choice, we will see the decentralized industry grow.

[Iranus]

Some countries already blame crypto for their economic woes. We saw this with the harassment of some crypto executives and even jail terms for some. What will happen to Bitcoin and other cryptocurrencies if most countries ban centralized exchanges? What steps are the crypto enthusiasts taking to preempt this?

This is not going to happen that all the centralized exchanges get banned across the Globe. Yes, the ban can be limited to some countries or regions but saying that all the centralized exchanges will end up operations does not seem a realistic argument.

Anyways for the sake of argument, even if we believe that this comes true and all the exchanges are banned, the crypto trading will still be alive through decentralized exchanges. Right now, we do not find much liquidity in decentralized exchanges but in this scenario, we may see a lot of funds being moved from centralized to decentralized exchanges, thus making it a perfect environment for the crypto traders.

We all want such exchanges to grow but these days ease and liquidity is more at centralized exchanges and traders do not move to the decentralized ones. Once they have no choice, we will see the decentralized industry grow.

Governments even promote the development of centralized exchanges because they will control us through them so the scenario of countries banning centralized exchanges will never happen. On the contrary, what I'm more concerned about is for decentralized exchanges because that's something that governments don't like because they can't control us if we use them.

Their crackdown on coins like XMR or mixers shows they don't want us to be free and I wouldn't be surprised if the government suddenly tried to crack down on DEXs. Currently, decentralized exchanges do not have large trading volumes, so the government may not have noticed, but if they have unusual trading volumes, I believe that government intervention is inevitable.

[FinneysTrueVision]

What happened with the Binance employees in Nigeria was an overreaction. Most countries still have the rule of law in some form. They can sanction and fine exchanges, and in some extreme cases lock up their CEO, like the U.S. did with CZ, but after they’ve collected their pound of flesh they will still allow exchanges to operate under stricter conditions.

Governments want more control and use regulation to achieve this. Completely banning a legal business is not entirely feasible. People will just turn to black markets for trading and that would reduce the amount of taxes they are able to collect. A ban won’t be necessary until they feel it is a serious threat to fiat dominance, but in the meantime they will try maintain some control over its adoption through regulation.

[Z-tight]

Their crackdown on coins like XMR or mixers shows they don't want us to be free and I wouldn't be surprised if the government suddenly tried to crack down on DEXs. Currently, decentralized exchanges do not have large trading volumes, so the government may not have noticed, but if they have unusual trading volumes, I believe that government intervention is inevitable.

They don't want bitcoiners to have privacy, so they are directing centralized exchanges to delist privacy coins, and they are also attacking and shutting down mixers and privacy enhancing wallets, charging many of them with money laundering crimes.

They are focused on services that obscure the origin of tx's, for now it does not look like they are after decentralized exchanges, and the low trading volume is surely part of the reason. A time may come when their focus changes and then they try to force kyc compliance from decentralized services, i believe only truly decentralized exchanges like Bisq, which does not have a single point of failure will survive.

[mindrust]

P2P and real decentralized exchanges will be the new normal. However, a worldwide centralized exchange ban will come with a total crypto ban probably and that means even the decentralized exchanges won't have much volume because people will be afraid to touch crypto. I doubt that the govs will do something as stupid as this though. In many parts of the world they are taxing crypto gains and it benefits the govs a lot. It is like owning a huge share in the the biggest casino of the world. They won't kill a business like that. They don't care who makes or loses money. The gov will take their cut anyway.

[Darker45]

P2P and real decentralized exchanges will be the new normal. However, a worldwide centralized exchange ban will come with a total crypto ban probably and that means even the decentralized exchanges won't have much volume because people will be afraid to touch crypto. I doubt that the govs will do something as stupid as this though. In many parts of the world they are taxing crypto gains and it benefits the govs a lot. It is like owning a huge share in the the biggest casino of the world. They won't kill a business like that. They don't care who makes or loses money. The gov will take their cut anyway.

When it comes to Bitcoin, I guess the governments would rather take the if you can't beat them, join them approach than waging an all-out war. They can't kill it anyway. And unlike meth and arms smuggling and other illegal stuff, Bitcoin isn't actually bad for people. So it's easy for them to just allow it, regulate it, and earn from it. It isn't a crime, after all, so why should they allow it to be a cause of unnecessary headaches?

At this point in Bitcoin's adoption, I can't see it losing. So while centralized exchanges are an antithesis of Bitcoin's core principles, they'll definitely be accommodated by governments rather than banned.