What if DEXs are banned in the future?

[btc78]

Right now, centralized exchanges are, i would say, far more in danger when it comes to the government these past few months we see that the government are hellbent into putting restrictions or controlling some things related to coins and how an exchange function of course in fear these centralized exchanges obey

Cryptocurrencies are mainly made for decentralization and for the value of privacy if the decentralized exchanges were to be banned in the future it would be truly have a devastating impact in the community however i do not think it can be possible at least in the near future decentralization will make it harder for the government to track the people involved in such activities

[kentrolla]

I believe this would depend on the regulations put in place by the different governments, like how they will heavily check out what's happening to possibly remove the money laundering stuff. I think that's the biggest concern for regulating bodies. It would be hard to do but I think that could be the next one.

Mate, I don't think it would be an easy task for government to do because they don't control DEX or have any influence over DEX like they do have a hold for centralized exchanges and moreover even if they ban URL we have VPN services and even limited dependency which are on centralized storage will start shifting to decentralised exchanges. They cannot ban DEX but make it difficult for users to get fiat in exchange of Crypto which would lead people to explore other ways to do it.

[Bushdark]

I believe this would depend on the regulations put in place by the different governments, like how they will heavily check out what's happening to possibly remove the money laundering stuff. I think that's the biggest concern for regulating bodies. It would be hard to do but I think that could be the next one.

Mate, I don't think it would be an easy task for government to do because they don't control DEX or have any influence over DEX like they do have a hold for centralized exchanges and moreover even if they ban URL we have VPN services and even limited dependency which are on centralized storage will start shifting to decentralised exchanges. They cannot ban DEX but make it difficult for users to get fiat in exchange of Crypto which would lead people to explore other ways to do it.

Do you mean that the decentralized exchanges can not be control by the government? It is very possible and I pray that time will not come because this will have a great consequences on the entire crypto market. The decentralized exchanges are registered and licensed by government firms given the pass to operate. So there is no way we are not going to see the hand of the government if that time if restrictions ever comes to the crypto market. The government has control on us and there is no way we avoid that.

[zasad@]

Governments seem to come up with something new to prevent crypto from achieving its full potential. From cracking down on mixers and enforcing KYC across centralized exchanges, they aim keep crypto under their control. The only things they can't manipulate or enforce the rule of law (aside from blockchain networks themselves) are decentralized exchanges.

But what if governments decide to hunt down the developers of DEXs? Or what if they estalish a law where developing a non-compliant DEX (no-KYC) can be subject to prosecution (jail time or fines)? If that happens, the industry will be doomed. With a US senator drafting the "Digital Currency Anti-Money Laundering Act of 2023", anything's possible.

What do you think will happen if DEXs are "banned" in the future? Will they die? Or will they still survive (despite the fact that most people will avoid them to prevent jail time or being fined)?

Your input will be greatly appreciated. Thank you very much.

Large DEXs will be regulated by laws and there will be whitelists and blacklists. Anyone can use older versions of UniSwap and similar DEXs, but without liquidity these exchanges will not be able to attract users. And if the exchange, despite all the efforts of regulators, gains popularity, then watch the story of Tornado Cash.

[danherbias07]

With no ownership, I don't think they can do a lot about DEX. The problem is, they are just erasing something without anything back in return unlike when they ban Binance or any popular CEX.
I think somehow they will get tired of attacking DEX and they will just keep it going on. I mean, government personalities who are aiming to be popular for vote reasons won't get anything out of it because there's no proof of their work. They cannot take advantage of it unlike Binance who was attacked by the SEC so they get all the attention now and Gary Gensler became a popular name in the crypto industry that can be used when he runs office.
They can ban all the DEXs as much as they like but as I said earlier, this won't them get popular to help out in their run for the office. So, who would waste time at doing this next time if they know there's nothing in return? I doubt they will still care about it.

[Huppercase]

Governments seem to come up with something new to prevent crypto from achieving its full potential. From cracking down on mixers and enforcing KYC across centralized exchanges, they aim keep crypto under their control. The only things they can't manipulate or enforce the rule of law (aside from blockchain networks themselves) are decentralized exchanges.

I don't think so unless there is a multiple report about a dex that allow scammers to swap hack coins within a pool and many times I have seen in protocols, if there is an announcement of a hack that happened in any of the chain and they notice that the hacker or scammer is using the Dex to launder the coins into another, they quickly pass a decentralized vote to ban the wallet. They are not doing it because of the government but they do it because it's not right for a person to launder peoples wealth and I have experience it myself.

But what if governments decide to hunt down the developers of DEXs? Or what if they estalish a law where developing a non-compliant DEX (no-KYC) can be subject to prosecution (jail time or fines)? If that happens, the industry will be doomed. With a US senator drafting the "Digital Currency Anti-Money Laundering Act of 2023", anything's possible.

What do you think will happen if DEXs are "banned" in the future? Will they die? Or will they still survive (despite the fact that most people will avoid them to prevent jail time or being fined)?

Your input will be greatly appreciated. Thank you very much.

Dexes are not even the problem of government because blockchain is transparent and it's an open ledger, even a person use a dex to carryout scam, they will trace that transaction further to the final point to where the coins end and if there is a conversion to fiat, that's where they identify the scammer.

Now the problem is that fiat doesn't convert coins to fiats, so its just from one coin to another which the government can track further and because it's centralized exchanges that supports this fiats p2p selling, they mandate them to forced KYC in everyone throat so they can know where money is coming and where money is going, Dexes can't be held responsible for such.

[Ben Barubal]

Governments seem to come up with something new to prevent crypto from achieving its full potential. From cracking down on mixers and enforcing KYC across centralized exchanges, they aim keep crypto under their control. The only things they can't manipulate or enforce the rule of law (aside from blockchain networks themselves) are decentralized exchanges.

But what if governments decide to hunt down the developers of DEXs? Or what if they estalish a law where developing a non-compliant DEX (no-KYC) can be subject to prosecution (jail time or fines)? If that happens, the industry will be doomed. With a US senator drafting the "Digital Currency Anti-Money Laundering Act of 2023", anything's possible.

What do you think will happen if DEXs are "banned" in the future? Will they die? Or will they still survive (despite the fact that most people will avoid them to prevent jail time or being fined)?

Your input will be greatly appreciated. Thank you very much.

  How can a country resist something that is out of control? The bitcoin they can't do because it's decentralized—how much more in Dex yet? It just came to mind that the Dex was unregulated, and we know that no government has jurisdiction here.

  But let's still suppose that it really is, so that means our only chance and choice is that centralized exchanges are the only ones we can use for the exchange of cryptocurrencies and bitcoin. Which is the government controlled as if the former is under the government control?

[Sophokles]

Right now, centralized exchanges are, i would say, far more in danger when it comes to the government these past few months we see that the government are hellbent into putting restrictions or controlling some things related to coins and how an exchange function of course in fear these centralized exchanges obey

Cryptocurrencies are mainly made for decentralization and for the value of privacy if the decentralized exchanges were to be banned in the future it would be truly have a devastating impact in the community however i do not think it can be possible at least in the near future decentralization will make it harder for the government to track the people involved in such activities

Centralized exchanges can be shut down easily by the government, but if they want to ban decentralized exchanges as well, it won't have much impact as a user doesn't need to do KYC and the team behind the project can restrict users from a certain region from using them. What the government can do is ban the URL but there are so many ways to go around that problem and the user or the project will find the best solution for their own profit so that their user can use that service if the government bans their exchange URL.

[doomloop]

I believe this would depend on the regulations put in place by the different governments, like how they will heavily check out what's happening to possibly remove the money laundering stuff. I think that's the biggest concern for regulating bodies. It would be hard to do but I think that could be the next one.

Mate, I don't think it would be an easy task for government to do because they don't control DEX or have any influence over DEX like they do have a hold for centralized exchanges and moreover even if they ban URL we have VPN services and even limited dependency which are on centralized storage will start shifting to decentralised exchanges. They cannot ban DEX but make it difficult for users to get fiat in exchange of Crypto which would lead people to explore other ways to do it.

What about Bitcoin? It is also decentralized but governments manage to ban it on their country. I know even not directly but that still causes an annoyance to the public. And I don't think many can go against with their rules by bypassing the restrictions applied because they know that governments eye are too sharp to spot them easily and gave them a tough punishment.

Decentralized exchanges has an advantage like users are free to trade without a KYC. This is probably one of the reasons why governments are after it. For me, I won't really worry since I'm fine on using a Centralized exchange. In fact I use it most of the times, over the decentralized one.

[_BlackStar]

What do you think will happen if DEXs are "banned" in the future? Will they die? Or will they still survive (despite the fact that most people will avoid them to prevent jail time or being fined)?

Nothing special - it was a setback for the industry, but the industry could still thrive under government regulations. I can completely understand the concerns - but the government absolutely doesn't want anything related to this industry to get out of their control, so it's likely they'll also go after DEX sooner or later.

Users might consider staying away from things the government bans - that would obviously be done to avoid financial losses. This is another risk that every investor needs to consider before they dive into the industry - meaning regulation and any changes to its rules are an important consideration if they want to invest.

[Mpamaegbu]

But what if governments decide to hunt down the developers of DEXs?

You think they aren't plotting that already? Come on, they're obviously at it (I would be shocked if they aren't). It's just that Dexs aren't easily manipulated like Cexs and that's why no evidence is showing yet. You think those politicians wielding enormous powers who've labelled this industry pro-money laundering aren't doing all they can to see how they can crack Dexs? But of course, they're.

What do you think will happen if DEXs are "banned" in the future? Will they die? Or will they still survive (despite the fact that most people will avoid them to prevent jail time or being fined)?

I don't think they will die off if that happens. What I think will happen is that people will find a way to adjust around it. Perhaps another tech or invention will be born out of it. You know what they say – Necessity is the mother of invention.