Future of crypto exchanges

[Rikafip]

Now that binance exchange have compulsory KYC verification it seems that the door is open for people like we to move out and look for other options, the question is how long will it takes for other exchanges to join? For example coinEX and kucoin? How about Dex exchange? Any good one in mind? I used uniswap in the past but high gas fee made me quit.  

Future doesn't look bright at all for centralized exchanges, as they are forced to implement KYC more and more in order to be able to keep working, like Binance is doing. DEX is the way to go, but I guess we are still waiting for something that is cheap and convenient to use. Haven't tried Bisq yet, but I heard some good stuff about it.

The first one I remember was Cryptsy then it started acting shady and was replaced by Poloniex then that started acting shady and asked for KYC and was replaced by Bittrex then they started acting shady asked for KYC and scammed their users so they were replaced by Binance. Today Binance is acting shady and asking for KYC...

I think that FTX might take over Binance as I see more and more people are using it as an alternative. Unless they go the same way and implement KYC, which imho wouldn't be a surprise.

[XUR_TIP]

Now that binance exchange have compulsory KYC verification it seems that the door is open for people like we to move out and look for other options, the question is how long will it takes for other exchanges to join? For example coinEX and kucoin? How about Dex exchange? Any good one in mind? I used uniswap in the past but high gas fee made me quit. 

I thought this compulsory KYC verification will just be for those  recently created binance accounts. Isn't it? Or I have some misunderstanding about their notifications about this matter.
I am still able to trade and withdraw in my account, however my partner's account can't do anything unless undergo in KYC and get verified.

No sir it's clearly stated by binance team that this new KYC rules is pointing to both old and new users on the platform, limited time is given to pass the KYC is anyone haven't so it's like a ticking time bomb

[pooya87]

Yes I am aware of that. But for all those top exchange no one can match how Binance give the satisfaction the people wanted. Yes they acted strange and become strict, due to sec regulations, and some reasons.

Well people were satisfied with all those previous exchanges too. Yet they all got replaced. Keep in mind that it is a transition that will take time, it won't be like a quick mass migration from Binance to elsewhere. First an alternative has to be introduced then people slowly move there and as the volume increases the migration speeds up.

The important thing is that right now there is a huge gap in the market that someone with a good business head could take advantage of.

I think that FTX might take over Binance as I see more and more people are using it as an alternative. Unless they go the same way and implement KYC, which imho wouldn't be a surprise.

I have to admit I've never heard about this exchange before, but it looks like it is ranked #5 (out of 308) exchanges on coinmarketcap.com I will definitely check it out. Thanks.

[cryptoaddictchie]

Well people were satisfied with all those previous exchanges too. Yet they all got replaced. Keep in mind that it is a transition that will take time, it won't be like a quick mass migration from Binance to elsewhere.

Yes I agree to that. In my opinion, it will take a while, possibly decades or never Binance got replaced even with the issues arises now. Community loves a good brain and features shwocase by Binance, it cant be suddenly strip by some newcomer, evem though it is not impossible.

Anyway, lets see what would happened few years from now. But I'll bet even after decades Binance will still lead the cex lieneage. ( will be back on this response in few years and will see which si right) I could be wrong too, but my guts telling me it wont happened.

[Rikafip]

I have to admit I've never heard about this exchange before, but it looks like it is ranked #5 (out of 308) exchanges on coinmarketcap.com I will definitely check it out. Thanks.

Quite a few people I know are switching from Binance to FTX, and from what I could hear they are all satisfied with it. I made account but haven't used it personally yet so can't really say how good it is. At the moment I see it more as a reserve, but have to check it properly before I made it my main exchange.

Binance was one of the early investors in FTX and those two were pretty close, but few months ago they bought back the shares from CZ, which is a smart move I think, to distance themselves from Binance as much as possible.

[tranthidung]

Quite a few people I know are switching from Binance to FTX, and from what I could hear they are all satisfied with it

Because they waive withdrawal fees especially last year when transaction fee on ETH network was very expensive.

• Blockchain Deposits and Withdrawals

Binance was one of the early investors in FTX and those two were pretty close, but few months ago they bought back the shares from CZ, which is a smart move I think, to distance themselves from Binance as much as possible.

Smart move, definitely.

They also do another smart decision, a partnership with Solana as a core blockchain for FTX. They did not choose Binance Smart Chain as you said, they want to keep distancing from Binance. Because they are bigger and aware that they can compete with Binance in the future.

[Rikafip]

Because they waive withdrawal fees especially last year when transaction fee on ETH network was very expensive.

• Blockchain Deposits and Withdrawals

Yeah, their fee structure is better.

They also do another smart decision, a partnership with Solana as a core blockchain for FTX. They did not choose Binance Smart Chain as you said, they want to keep distancing from Binance. Because they are bigger and aware that they can compete with Binance in the future.

Tbh, wouldn't make much sense to choose BSC as they are direct competitors. The only reason I am still using Binance is because of their card, which I am using on the daily basis and is probably the cheapest and easiest way to spend your crypto. Few years ago I had to do KYC with Binance as my phone which had Google authenticator died and I couldn't recover it, so since I already had KYC done (which is a requirement), why not as well use their card. At some point I just got sick of paying all those high ATM fees.

[Pmalek]

Some exchanges may follow Binance steps since it is the leading exchange, I also can't use all services in Binance because I've not passed their KYC due to the documents that they want.

If you don't pass their KYC, your account will be turned to a withdraw only type of account. You won't be able to carry out new trades or exchange your assets. You can only withdraw the ones already there.

Many people are always talking good about DEX exchanges but they forget to talk about how people are losing money every day with fake tokens which are listed in DEX exchanges!

Are you talking about purchasing fake tokens that are named the same or similarly to a real token? In that case you need to pay an attention to the contract address. It has to be posted somewhere. Compare the contract address to data shown on Etherscan, for example, t determine which one is the real asset and which ones are fake.

I thought this compulsory KYC verification will just be for those recently created binance accounts. Isn't it?
...
I am still able to trade and withdraw in my account, however my partner's account can't do anything unless undergo in KYC and get verified.

They are rolling out the changes slowly. Not everyone is hit with the KYC requirements at the same time. Sooner or later you will receive a notification that you need to pass KYC to continue to trade on Binance if you haven't already passed it but you forgot.

Newly registered accounts have to pass KYC before trading. I think that's the difference.

[Luzin]

What if all exchanges implemented KYC, would you not trade crypto?
I hear that after China bans crypto America will not participate, but they will arrange more details. Maybe this could include KYC. Actually, this problem is a classic thing, where in fact this KYC document has often been used by us at the Bank. But it seems the problem in trading sites is more complicated, this is makes us a little doubtful but we need.
I think they require to do KYC because of regulation, regarding Binance I have done even Kucoin I also do KYC verification. I did that because I needed it for the sake of trading and making money.

[AakZaki]

They are rolling out the changes slowly. Not everyone is hit with the KYC requirements at the same time. Sooner or later you will receive a notification that you need to pass KYC to continue to trade on Binance if you haven't already passed it but you forgot.
~snip~.

Talking about the future of the exchange, I think there will be stricter regulations. Maybe later there will be more crypto exchanges that appear. They will offer convenience and low cost. But regarding the KYC issue, just look at some exchanges that previously did not do KYC, now have implemented it. I think going forward there will be no exchange without KYC, as they will be set to comply. If they violate, they may be subject to sanctions and could be detrimental to the stock exchange owner.

[Issa56]

I believe you should deal with what is happening currently, I believe with all cryptocurrency exchange will definitely be requesting for kyc but currently there are some exchange that don't really require kyc so you can be using those once for now and whenever others request for kyc there will definitely be a way out so you don't have to rush or panic their will definitely be a way out.

[Pmalek]

I hear that after China bans crypto America will not participate, but they will arrange more details. Maybe this could include KYC.

I think one of the proposal was that if you transacted with bitcoin above a certain amount, you would be required to provide details about the person you are sending those coins to from within the app/wallet you are using. I think this ridiculous idea was laughed at and rejected already. 

Actually, this problem is a classic thing, where in fact this KYC document has often been used by us at the Bank. But it seems the problem in trading sites is more complicated, this is makes us a little doubtful but we need.

Crypto exchanges often make disastrous security mistakes that can led to data theft and you having all your private data leaked and compromised. Even if that wasn't the case, people aren't and shouldn't be comfortable allowing some online team you have never seen or met to access and store your personal privacy data. Your bank knows all about you and your financials, but would you be comfortable sharing the same data with the guy who fills up your tank at the gas station?

Binance and other exchanges are no different. Who knows if the data will one day be hacked, sold, or shared with government agencies.

[tvplus006]

...I think going forward there will be no exchange without KYC, as they will be set to comply. If they violate, they may be subject to sanctions and could be detrimental to the stock exchange owner.

Even if all existing exchanges introduce mandatory verification today, a new exchange will definitely arise that will not require KYC. After all, if there is a demand for such exchanges where KYC is not required, then such a proposal will certainly arise. But in any case, those who care about their privacy, they can use decentralized exchanges.

[Ryker1]

...I think going forward there will be no exchange without KYC, as they will be set to comply. If they violate, they may be subject to sanctions and could be detrimental to the stock exchange owner.

Even if all existing exchanges introduce mandatory verification today, a new exchange will definitely arise that will not require KYC. After all, if there is a demand for such exchanges where KYC is not required, then such a proposal will certainly arise. But in any case, those who care about their privacy, they can use decentralized exchanges.

Well, it is always expected that there is a KYC procedure once the exchange is regulated by the government because they follow the government protocol which is they are very against being anonymous. They are doing this because we know they are fighting against fraud that is possible that will happen on the exchange that did not require their user a full KYC verification. It is totally different if you will choose decentralized than the centralized exchange, the problem of decentralized exchange has a low volume trade and it will take longer to execute your order.

[Charles-Tim]

Even if all existing exchanges introduce mandatory verification today, a new exchange will definitely arise that will not require KYC.

What is mostly important is the security of our coins, one of the scam tactics is to create a fake exchange that will not need verification, having investment plan and the likes. There could be a time verified centralized exchanges will be the ones that are trust worthy of the exchanges that are existing later and enforcing kyc, some new exchanges can be fake and belong to scammers while people trust old exchanges than new exchanges.

To have privacy, it is best to just go for decentralized exchanges. Sooner or later, more centralized exchanges will have to comply with the government.

[tvplus006]

...It is totally different if you will choose decentralized than the centralized exchange, the problem of decentralized exchange has a low volume trade and it will take longer to execute your order.

The volume of trading on decentralized exchanges is now very large, but the number of pairs represented there is very much inferior to CEX. In addition, DEX lacks a large number of services that traders of centralized exchanges are used to, such as margin trading. You should also keep in mind the high commissions in the Ethereum network on DEX.

[Skinny48]

I will gladly move to Dex exchange if all centralised exchanges decide to permanently compulsory KYC verification then let's see how the government will be on users tail this way, I know centralised exchanges has the highest volume over all but if KYC verification is compulsory more volumes will be moved to Dex I believe that

[LordMiguel]

i think people will still trust and use Centralized exchange not because it is centralized but because of the volume and safety it provides. most centralized exchanges offerers users a beehive for their crypto. most people that can't store information or have a personal wallet to mange will like to leave their tokens/coin in exchanges.  for me, i am okay with KYC as long as the exchange is trusted and a top tier with reputation. i recommends avoiding new exchanges.

[CryptopreneurBrainboss]

i think people will still trust and use Centralized exchange not because it is centralized but because of the volume and safety it provides.

Actually it's because of ignorant mostly and secondly because the so called decentralized exchange aren't worth it. They're not as safe as they claim due to the fact majority are just poorly copy paste of already existing ones. Like most of the so called swap like exchanges are just copies of uniswap. We're yet to achieve full perfection when it comes to dex but surely that'll be achieved someday.

Centralized exchange aren't safe, they get attacked every now and then and it's just a matter of time before they disappear like the likes of Cryptopia and be rest assured they're taking customers funds with them.  In regards to the volume, that can't be an excuse anymore as most of the dex are competing with the top centralized exchange when it comes to volume in transaction.

If you still want the comfort cex gives then don't turn them into wallets but just used them for your trades. Provided your funds aren't on the exchange but in your personal wallet then you're okay.

[sheenshane]

I will gladly move to Dex exchange if all centralised exchanges decide to permanently compulsory KYC verification then let's see how the government will be on users tail this way, I know centralised exchanges has the highest volume over all but if KYC verification is compulsory more volumes will be moved to Dex I believe that

It's possible that will happen.
But not all are afraid of the KCY verification and they are willing to submit their file and documents just to pass their KYC verification.
When we're talking about the volume which we know decentralized exchanges have a poor on it because many people are using the centralized one due to their feature that you can all support.

I like this idea if many traders will transfer to DEXs since CEXs are most regulated by now and we can see, bye-bye centralized exchange platform.