How would crypto fare without centralized exchanges?

[Abiky]

If crypto becomes extremely popular in the future (widely adopted by a vast majority of people worldwide), it's probable governments will turn against it. They can pressure centralized exchanges to close up shop or face serious consequences in the long run. After all, these exchanges are the on and off ramps from the crypto world to the Fiat world. While not every country is against crypto, they might change their stance once they see Russia using it as a means to avoid sanctions.

Imagine if most countries unilaterally agree on banning centralized exchanges for good. Will that mean the end of crypto for good (even though it would still be possible to get some crypto through decentralized exchanges)? After all, most people will be afraid of using crypto if it's declared "illegal". The ban of centralized exchanges will surely topple crypto prices, signaling fear among investors and traders alike.

What are your thoughts?

[vv181]

If crypto becomes extremely popular in the future (widely adopted by a vast majority of people worldwide), it's probable governments will turn against it. They can pressure centralized exchanges to close up shop or face serious consequences in the long run. After all, these exchanges are the on and off ramps from the crypto world to the Fiat world. While not every country is against crypto, they might change their stance once they see Russia using it as a means to avoid sanctions.

It is also most likely that governments demand more control over the centralized entities. Regarding Russia, well, the world does not tend toward the west, recently India bought Russian oil and they are still also "backed" by China. I think Russian using cryptocurrency does not have a correlation with other country banning it, surely there is a more approachable way for them to get around the sanctions.

Imagine if most countries unilaterally agree on banning centralized exchanges for good. Will that mean the end of crypto for good (even though it would still be possible to get some crypto through decentralized exchanges)? After all, most people will be afraid of using crypto if it's declared "illegal". The ban of centralized exchanges will surely topple crypto prices, signaling fear among investors and traders alike.

Fearing the investors and the traders, yes they will be. But for the people who truly make use of a decentralized currency, I don't think they have lost the meaning of using cryptocurrency. I presume the government rather crackdown on miners rather pressure centralized exchange, if their motives to total ban cryptocurrency, then they should be considering taking down the system as a whole.

[Abiky]

It is also most likely that governments demand more control over the centralized entities. Regarding Russia, well, the world does not tend toward the west, recently India bought Russian oil and they are still also "backed" by China. I think Russian using cryptocurrency does not have a correlation with other country banning it, surely there is a more approachable way for them to get around the sanctions.
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Fearing the investors and the traders, yes they will be. But for the people who truly make use of a decentralized currency, I don't think they have lost the meaning of using cryptocurrency. I presume the government rather crackdown on miners rather pressure centralized exchange, if their motives to total ban cryptocurrency, then they should be considering taking down the system as a whole.

It's probably most governments will crackdown on miners, after banning centralized exchanges altogether. But just like China, they won't be able to "destroy" crypto because of its decentralized and censorship-resistant design. People can still use crypto in China through other means. But they're going to have to do it in secret because if they're caught, it's "game over" for them. I'm glad Satoshi designed Bitcoin to be decentralized and open source, or it would've been dead by now. A centralized crypto ecosystem would make it easier for governments to destroy altogether. After all, they don't want to lose control over people's money.

No centralized exchanges means decreased adoption for crypto/Blockchain tech in the mainstream world. Perhaps, prices won't be as high as they are right now as demand for crypto will be limited. I wouldn't worry about this as long as crypto stay true to its roots by being a decentralized kind of money anyone can use worldwide. Just my opinion

[vv181]

It's probably most governments will crackdown on miners, after banning centralized exchanges altogether. But just like China, they won't be able to "destroy" crypto because of its decentralized and censorship-resistant design. People can still use crypto in China through other means. But they're going to have to do it in secret because if they're caught, it's "game over" for them. I'm glad Satoshi designed Bitcoin to be decentralized and open source, or it would've been dead by now. A centralized crypto ecosystem would make it easier for governments to destroy altogether. After all, they don't want to lose control over people's money.

Cracking down miners would be a prominent option, but I think it is pretty much pointless. And yes they will only do it as a last resort. The reason why I think it may be pointless is that noting there is a country that already made Bitcoin as a legal tender, so ideally they should keep supporting it.

I wouldn't worry about this as long as crypto stay true to its roots by being a decentralized kind of money anyone can use worldwide. Just my opinion

After all, the decentralized nature is what made peoples have power and their own control. So I do too wouldn't worry about it too much besides a few scenarios that addressed all above

[BitKongy]

Better solutions will erupt before that time comes, the government wants everything under its palm but not crypto, we have DExs now but still not perfect cos they have their flaws too let's just hope that decentralisation gets stronger as time goes by.

[teosanru]

If crypto becomes extremely popular in the future (widely adopted by a vast majority of people worldwide), it's probable governments will turn against it. They can pressure centralized exchanges to close up shop or face serious consequences in the long run. After all, these exchanges are the on and off ramps from the crypto world to the Fiat world. While not every country is against crypto, they might change their stance once they see Russia using it as a means to avoid sanctions.

Imagine if most countries unilaterally agree on banning centralized exchanges for good. Will that mean the end of crypto for good (even though it would still be possible to get some crypto through decentralized exchanges)? After all, most people will be afraid of using crypto if it's declared "illegal". The ban of centralized exchanges will surely topple crypto prices, signaling fear among investors and traders alike.

What are your thoughts?

If centralised exchanges are banned, i am very sure that founders of these centralized exchanges themselves would create decentralised exchanges which could work much better than or atleast at par with the centralised exchanges of today. The only problem that decentralised exchanges face is the volume and fees, volume problem will automatically get solved if centralised exchanges are ban and fees problem can be solved by using a coin with low fees.

[Marvell1]

If crypto becomes extremely popular in the future (widely adopted by a vast majority of people worldwide), it's probable governments will turn against it. They can pressure centralized exchanges to close up shop or face serious consequences in the long run. After all, these exchanges are the on and off ramps from the crypto world to the Fiat world. While not every country is against crypto, they might change their stance once they see Russia using it as a means to avoid sanctions.

Imagine if most countries unilaterally agree on banning centralized exchanges for good. Will that mean the end of crypto for good (even though it would still be possible to get some crypto through decentralized exchanges)? After all, most people will be afraid of using crypto if it's declared "illegal". The ban of centralized exchanges will surely topple crypto prices, signaling fear among investors and traders alike.

What are your thoughts?

If centralised exchanges are banned, i am very sure that founders of these centralized exchanges themselves would create decentralised exchanges which could work much better than or atleast at par with the centralised exchanges of today. The only problem that decentralised exchanges face is the volume and fees, volume problem will automatically get solved if centralised exchanges are ban and fees problem can be solved by using a coin with low fees.

The majority of users today prefer low transaction fees and being able to trade multiple currency pairs on one platform and we can convert to fiat quickly. I think this is the reason CEX is still popular.
Decentralized exchanges are still heavily restricted, but if centralized exchanges close completely, then developers will focus on developing and promoting the entire decentralized exchange to in line with market needs.
But the hypothesis that the entire CEX is banned is almost impossible. Instead of the government against, the government will make strict regulations or through CEX the government can control our transactions.

[Jackl87]

If crypto becomes extremely popular in the future (widely adopted by a vast majority of people worldwide), it's probable governments will turn against it. They can pressure centralized exchanges to close up shop or face serious consequences in the long run. After all, these exchanges are the on and off ramps from the crypto world to the Fiat world. While not every country is against crypto, they might change their stance once they see Russia using it as a means to avoid sanctions.
Imagine if most countries unilaterally agree on banning centralized exchanges for good. Will that mean the end of crypto for good (even though it would still be possible to get some crypto through decentralized exchanges)? After all, most people will be afraid of using crypto if it's declared "illegal". The ban of centralized exchanges will surely topple crypto prices, signaling fear among investors and traders alike.
What are your thoughts?

To be honest i think if that ban would have occured like 2 years ago then this could have potentially been the end for the whole crypto space because back then there were no real Dexes yet, except one on the ETH network which name if have forgotten at the moment but i also remember that the functionality of that DEX was by far not as good as it is today.
That is also the reason why i think that a ban of centralized exchanges would not really be the end of crypto anymore today because just take a look at how many Dexes we have out there now already there are at least a few to chose from for basically each relevant blockchain out there. So the trading could continue.

[usekevin]

Some country had legalised the bitcoin in many mode.China legalised before and many people had invested on mining in crypto mining.After some years government of China had come to know they was second on crypto mining setup.Then China had stopped the mining,it impacts the huge difference in 2018 in the bitcoin price.

[Doell]

I think Centralized exchange is the core of the community on the world side, however the government will not be able to curb people freedom to keep using crypto, maybe crypto will fall in price if the government imposes a ban to centralized exchanges. However, this situation may not be happen because the government is there for the people, not the people for the government. Although the future no one knows but as far as I know the government can't raise its his wish to make the people unhappy.

[jrrsparkles]

If crypto becomes extremely popular in the future (widely adopted by a vast majority of people worldwide), it's probable governments will turn against it. They can pressure centralized exchanges to close up shop or face serious consequences in the long run. After all, these exchanges are the on and off ramps from the crypto world to the Fiat world. While not every country is against crypto, they might change their stance once they see Russia using it as a means to avoid sanctions.

Imagine if most countries unilaterally agree on banning centralized exchanges for good. Will that mean the end of crypto for good (even though it would still be possible to get some crypto through decentralized exchanges)? After all, most people will be afraid of using crypto if it's declared "illegal". The ban of centralized exchanges will surely topple crypto prices, signaling fear among investors and traders alike.

What are your thoughts?

When people are having cryptocurrencies because they want to avoid the use of fiat they why they have to convert their cryptocurrencies to fiat anymore they can simply transact via cryptocurrencies itself right.

Anyway if all the centralized exchanges are banned still the decentralized exchanges and p2p may work probably from El Salvador even centralized exchange as well.

[cryptomaniac_xxx]

If crypto becomes extremely popular in the future (widely adopted by a vast majority of people worldwide), it's probable governments will turn against it. They can pressure centralized exchanges to close up shop or face serious consequences in the long run. After all, these exchanges are the on and off ramps from the crypto world to the Fiat world. While not every country is against crypto, they might change their stance once they see Russia using it as a means to avoid sanctions.

Imagine if most countries unilaterally agree on banning centralized exchanges for good. Will that mean the end of crypto for good (even though it would still be possible to get some crypto through decentralized exchanges)? After all, most people will be afraid of using crypto if it's declared "illegal". The ban of centralized exchanges will surely topple crypto prices, signaling fear among investors and traders alike.

What are your thoughts?

I don't know, if this happens then there could be a huge influx of CEX moving to a friendly crypto countries. I think this will be the only solution of countries started to banned them. I mean it's going to be very difficult to stop crypto, every one is trying to get on-board including countries. So I doubt that "unilaterally" there will be such a ban.

Besides, crypto is decentralized, the only way to stop it, is to cut the internet around the world, which is not going to happen unless we are in a world war or something really happen like huge earthquakes.

[jossiel]

There will be a consensus that everyone wouldn't care if the exchange is licensed or not. As long as they've got the reputation and they've been there operating genuinely, there's the chance that despite declaring ban on exchanges and crypto, still, there will be a lot of them in existence.

This is a free market after all, a decentralized market for which no country can cease its existence. So no matter what happens, there will always be the solution with these bans.

[DeathAngel]

I think it’s quite clear that without the big, well known, centralised exchanges then crypto wouldn’t be as successful & mainstream as it currently is. Governments would probably have cracked down & shut down exchanges that didn’t comply with their annoying KYC & AML rules.

[ryzaadit]

Yes, yes and yes.

In early-stage on "Bitcoin" almost all-transaction is from user to user that's mean we are not using centralized exchange because at that time we don't have it any. Escrow is the one solution, or some decentralized service who can connected buyer & seller directly.

The only problem of this case is trust issue, that's all.

[PrivacyG]

Will that mean the end of crypto for good (even though it would still be possible to get some crypto through decentralized exchanges)? After all, most people will be afraid of using crypto if it's declared "illegal".

There is a difference between banning Cryptocurrencies and banning Centralized Exchanges.  But in both situations, what happens is a big chunk of the users will go away and there will be a specific part of them which will continue to use Bitcoin with Decentralized Exchanges, Peer to Peer transactions et cetera.  Cryptocurrencies would however NOT die.  I really doubt they would.  Maybe all of them except a few, but Bitcoin definitely would not become obsolete.

Think of what Bitcointalk looked like a decade ago.  This is how I would see Bitcoin in the situation where Centralized Exchanges are torn apart.  If Cryptocurrencies are declared illegal, they may just continue to thrive in the underground markets.

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Regards,
PrivacyG

[Johnyz]

I understand CEX offers a great services but we have no choice but to look for alternatives if many countries will ban CEX, we are still lucky that some DEX are able to compete with those CEX so for sure they are the next option and DEX will rise more if this will happen. Governments are really unpredictable, they have the power to control CEX so we should always have the second option and never put big money on CEX to avoid problems like this.

[AmoreJaz]

Some country had legalised the bitcoin in many mode.China legalised before and many people had invested on mining in crypto mining.After some years government of China had come to know they was second on crypto mining setup.Then China had stopped the mining,it impacts the huge difference in 2018 in the bitcoin price.

in the past China be biggest mining farm so they have huge power to controll price by spreading fud to market. several times market crash due too many negative news come from China. But fortunately they banned bitcoin and crypto market so market become more decentralized again while miner spread to abroad. at that moment CHina have no more power again to fud market.

I understand CEX offers a great services but we have no choice but to look for alternatives if many countries will ban CEX, we are still lucky that some DEX are able to compete with those CEX so for sure they are the next option and DEX will rise more if this will happen. Governments are really unpredictable, they have the power to control CEX so we should always have the second option and never put big money on CEX to avoid problems like this.

i see many government become more friendly to crypto market and CEX. banning CEX will not give them benefits, their citizen will lose their money and also they will loose income potency from this market.

i believe it is good that China is already out of the picture but there are still miners from china. and regarding CEXs, where the OP mentioned that maybe russians will use it to avoid sanctions, if the government is indeed strict about it. these exchanges can just freeze or not accept russian accounts. but they can still operate. they are just prohibiting russians to use their services. and with regards to the use of CEXs, just don't store good amount of money on their platform. better secure it in your wallet. so if something happens, your funds are with you.

[Yogee]

Regulators are more worried of centralized exchanges now since majority of them still refuses to block Russian customers but it remains unlikely that there will be a unilateral ban.

I think it’s quite clear that without the big, well known, centralised exchanges then crypto wouldn’t be as successful & mainstream as it currently is.

What's even more clear to me is early users made these centralized exchanges to what they are today. It will be these same users who can make decentralized exchanges big enough when that complete ban on CEX comes.

[stomachgrowls]

Regulators are more worried of centralized exchanges now since majority of them still refuses to block Russian customers but it remains unlikely that there will be a unilateral ban.

I think it’s quite clear that without the big, well known, centralised exchanges then crypto wouldn’t be as successful & mainstream as it currently is.

What's even more clear to me is early users made these centralized exchanges to what they are today. It will be these same users who can make decentralized exchanges big enough when that complete ban on CEX comes.

Just like on what Binance did on where it do refuses on blocking Russian users into the platform and into the point that most government would banning or blocking or closing centralized exchange then

it would be still surely on a big debate or long due process for it to happen and if it does then we do have DEX around which we could make use of and of course there are various ways
on making out conversion without touching or needing on what these CEX is giving out but honestly i dont stress out myself about these probabilities.