@timerland. Agreed! Also, one country's strict ban might be another country's opportunity to use it versus the country that banned it. It might also increase demand in that country hehehe.
Definitely a good point. Banning something that's in high demand has never been a good idea. Usually doing such a thing to a popular item will just cause underground markets to be started and since they are underground, the government won't be able to control them and it just ends up being worse for them.
I am curious to know about what will happen to those decentralized exchanges which refuse to do KYC. Will they be seized, just like the feds seized BTC-e/Wex.nz?
How would they seize something which is decentralized (and distributed as well)?
Would they hunt all ETH miners, pools and node owners to stop DEX which use ETH smart contract?
Would they hunt the developer of the DEX, which won't stop DEX from running fine without them?
At most they would black list known coins which pass through DEX and block all website about DEX.
If I am not wrong, the domains can be easily seized. And after what happened with BTC-e/Wex.nz, I believe that in many cases the authorities will be even capable of seizing any funds within these DEX sites. But here the problem for them is that DEX sites don't usually store any coins. The coins are stored in the user wallets, even during trading.
The other possibilities that you had listed, such as closing down the ETH mining farms and blacklisting all the altcoins, are just not practical. They are difficult to implement on the ground and they may be ineffective.
It'll be impossible for user funds to be seized, good DEX's will make sure they will not be able to access the user's private keys and make sure their platform is just a platform for the users to trade on.
Domains getting seized is very interested though, I'm interested if they'd actually do that. Does that mean DEX's will have to move to other domains or use .onion domains to prevent them from being taken down as easily?
this defeats the sole purpose of decentralized exchanges - keep your personal data away from the agencies
it literally takes away the advantage decentralized exchanges had over centralized exchanges ,now what
all of the decentralized exchanges become compliant and turn into centralized exchanges?
this was expected but happened too soon , now they have only two options to comply or go rogue /hide in offshores
It does, but it's not all the exchange's fault. Companies are often forced to legalize their companies by the government, and it's looking grim for decentralization.
