Any exchange dealing with fiat conversion would have to adhere to some kind of AML/KYC regulations, so no amount of water
will stop people from dealing with that. They will also have to link to some Bank for money transfers, so that would void
international protection. As previously mentioned... the only way to do that would be to create a decentralized exchange that
are not linked to the Banking system.
![Roll Eyes](https://bitcointalk.org/Smileys/default/rolleyes.gif)
Does a decentralized exchange means that you can't exchange the bitcoin/alts to fiat and vice versa, but you can only exchange bitcoins to alts and back? If you don't link to banks, you don't have to follow their rules. If there's a centralized exchange (and not linked to banks) the authorities still can put a pressure on the owner of the centralized exchange. But if it's a decentralized one, authorities can't find a single person to stop the exchagne.
Do I understand it correctly?