A crypto world without CEXs...How would it be?

[yazher]

We have no choice but to adopt and make the best out of it.
CEX are being regulated so there’s a higher chance for them to being restricted, so far we are lucky to have countries accepting Bitcoin as a legal tender, at least that could be a safer place for CEX to operate if ever. Having no CEX around can limit people from transacting that much with cryptocurrency, we might be back to a slower era.

CEX helps to give more liquidity to most of the cryptocurrencies out there but the only problem is the regulations and restrictions of the world government against it. we just need to be thankful that despite all of this, some countries won't ban it as long as they pay the amount of taxes that they need to pay in that country. That alone is huge progress compared to past years' experience with bitcoins and altcoins. Also, some big companies are already putting some effort into innovating their services to adopt cryptocurrencies as their accepted and offered payment. To be honest, it's hard to think at least for a newbie like me how it would be if there will be no CEX anymore today.

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[Xal0lex]

Although this is an unlikely scenario, but something tells me that centralized services will always be popular, whatever the weather on the crypto market. People themselves are very often lazy and do not want to manage their assets themselves, do not want to learn the basics of decentralization, it is easier for them to trust some third party to quickly solve all their problems and to make cryptocurrency transfer operations as easy and convenient as possible. People always choose convenience over security, otherwise centralized services would have disappeared long ago.

[fullhdpixel]

I think we'll find a way, like we always do. For years, crypto has faced challenges from many parties, but we're still here to survive and thrive. Beside, at the beginning, crypto was meant to be decentralized, so it is actually all about P2P trading and, later, DEXs. Although there is no doubt that CEXs played a significant role in the development of crypto, If major countries reject crypto and blockchain technology, there could be a risk of CEXs shutting down their operations, but the crypto industry is not solely dependent on CEXs. With the massive development of crypto and how big the industry became, I think many countries will also think twice before banning it; they probably will regulate it instead. By doing so, CEXs could then adapt to the regulations and survive.

What way? There is still DEX, hellow? And DEX was in fact the best and should be use the most by people because this symbolizes the true purpose of cryptos not CEX as it pushes centralization which are opposed to the main objective of cryptos. CEX will only be affected if it was established on the same country who banned crypto but if not then they can run fine though they will only remove the banned countries from their supported list.

It can still affect their income. Some countries don't really care about the achievement of crypto or if how big it was already but they only think about themselves. They will still ban cryptos no matter what.

[Silberman]

If major countries around the world decide to reject crypto/Blockchain tech sometime in the future, there's a high probability CEXs (centralized exchanges) will cease to exist. They will shut down their operations as crypto is declared "illegal" for mainstream use. Without an on/off ramp to/from the Fiat and crypto worlds, I wonder how would the industry survive?

Will a world without CEXs mark the end of crypto? I know crypto is decentralized, but the truth is that CEXs provide most of the liquidity of the market. DEXs are "second-hand" options that have their own set of issues. Either mainstream adoption for crypto/Blockchain tech starts to decline, or all the other way around. We've seen how exchanges have been "closing up shop" in the US due to strict regulations. What makes you think other countries will tighten regulations especially when they claim crypto can be used to avoid sanctions?

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

This is incredibly unlikely to happen, even if most countries around the world were to ban cryptocurrencies and they went against centralized exchanges, there will always be a few countries out there which will see this as an opportunity they can use to make a lot of money and pass very favorable laws towards cryptocurrencies and centralized exchanges, and in that case centralized exchanges like binance will just move their operations there.

[Rengga Jati]

Will a world without CEXs mark the end of crypto? I know crypto is decentralized, but the truth is that CEXs provide most of the liquidity of the market. DEXs are "second-hand" options that have their own set of issues. ...

As long as the DEX has a big reputation, it will be still the last longer But, I don't think this will happen at least in this era, because CEX still becomes one of the most used exchanges or platforms to trust. Although it has some down sides. but this still be a good choice with high reputation. Moreover, in local exchanges, they must be the ones that are regulated under the law of the government in the country and this becomes the exchanges that are trusted so much because of registered in the country. But once more, CEX may be like banks, it is centralized and sometimes, we need the DEX for more privacy. SO, many people are also using DEXs for transactions again. I think both uses of CEX and DEX have its own advantages and disadvantages. That is why if someday CEX is no longer operated, I am sure that people will switch to DEX that has high reputation in order to choose more secure transactions. 

[Psynthax]

the volume and market capitalization definitely aren't gonna be this big, these cexes always give convenience for those that just want to invest, like majority of people, we just wanna invest and thats it, these cexes are already good enough for that, meanwhile with dexes you could see their are lacking the volume, there's reason many thinks cexes better but I guess everyone have their own preference.

[GreatArkansas]

Centralized exchanges are one of the biggest contributors to the cryptocurrency market. But without centralized exchanges, crypto trading would be decentralized, which could have several implications for the industry. For trading and investing in cryptocurrencies, the ecosystem will become more experimental and possibly more flexible.

[Abiky]

Well we would lose those institutional investors we wanted to get in for so long. At your scenario there wouldn't be instant ban, as laws don't move as quickly we would have some time to prepare. But that prepariing would most likely be massive panic and people would try to escape out before fiat pairs would be banned.

This would lead to lack of liquidity and total price crash. Most likely lots of people would even short it with leverage. I could see we might go back to 2013-2014 prices. As that what was happening before legit investors came. There were few big whales but it was a joke compared to current markets.

In the end we would be coming back to roots. People trading p2p, hard to say how many people would do that but it would be way harder and charts wouldn't really exist as they are now.
Some people would keep trading altcoin pairs (not stable coins tho). This would totally be a nerd and geek game after that. Some might think it would be a step up.

Institutional investors/VCs are the ones keeping the crypto market afloat. Without CEXs, they will simply go away. This means that most of the money being poured into crypto assets right now, will vanish in an instant. Bitcoin will decline massively in price, as well as, altcoins. There will still be a way to trade crypto (P2P, DEX, etc), but I doubt the majority of the people will do the switch when such solutions aren't as user-friendly as an ordinary CEX.

At least, truly-decentralized cryptocurrencies won't be going anywhere soon. The odds of a "full blanket ban" are slim, so there should be no reason to worry about CEXs disappearing anytime soon. Maybe restrictive countries like the US, China, and Russia will come to their senses soon? Just my thoughts

[hd49728]

Centralized exchanges are one of the biggest contributors to the cryptocurrency market. But without centralized exchanges, crypto trading would be decentralized, which could have several implications for the industry. For trading and investing in cryptocurrencies, the ecosystem will become more experimental and possibly more flexible.

Total trading volume on centralized exchanges is bigger than total trading volume on decentralized exchanges. However, they won't kill each other but will exist together. People will move their funds from CEXs to DEXs and with fear of losing money on CEXs by blackswan events, they always have reasons to keep part of their funds on self-custodial wallets which are available to use anytime on DEXs.

Well we would lose those institutional investors we wanted to get in for so long. At your scenario there wouldn't be instant ban, as laws don't move as quickly we would have some time to prepare. But that prepariing would most likely be massive panic and people would try to escape out before fiat pairs would be banned.

The USA. tries to restricts as much as possible against cryptocurrency companies, banks support cryptocurrencies as they are reviving Operation Choke Point after its previous failure enforcement in Obama time.

I don't believe US. congress and US. citizens will allow their government to ban cryptocurrency completely. That is a free nation and the voice of their citizens has its power.

Institutional investors/VCs are the ones keeping the crypto market afloat. Without CEXs, they will simply go away. This means that most of the money being poured into crypto assets right now, will vanish in an instant.

The cryptocurrency market is still young and very small (in its total marketcap) compares to traditional markets. I am sure if no serious regulations like you imagined happen, more institutional investors will join this market. Their new capital flow pours into this market will help it soars a lot in future.

[Farma]

It is very true that CEX has a very important role in the growth of crypto today. the fall of CEX will do fatal damage to crypto, in fact most of the public's trust may be reduced if CEX has been deemed illegal by the government. this will probably bring about the collapse of the crypto empire.
However, if crypto survives, then DEX will be the first choice in exchanges. besides that, P2P can also be an option, but it takes a lot of trust to make large transactions. The scenario I'm thinking of is, DEXs might be vying for the trust of crypto users and trying to replace CEXs. but still that big losses for crypto will still occur, especially those who focus on trading or futures on CEX, they will definitely lose faith in using crypto.

[josephsonand]

Even if regulations become stricter, I believe it's crucial to protect and increase the value of our crypto assets. That's why I rely on XGo's wallet, which offers daily interest on my assets with no charges.

[mirakal]

While it's true that the crypto world would still exist without centralized exchanges (CEX), the lack of government support could impact the future growth potential of cryptocurrency as an investment. Evading government regulations and expecting complete anonymity is not a realistic expectation, as most cryptocurrencies have become centralized in some way. Governments are also working to regulate the crypto market, which could impact the anonymity of certain cryptocurrencies.

Ultimately, cryptocurrency has become an alternative currency that uses decentralized ledger technology, but it's important to be aware of the evolving regulatory landscape and the potential impact on investments.

People who shout out loud that crypto promotes anonymity have no idea what is happening in the world right now. This is because anonymity can only be achieved if you do not convert your Bitcoin into fiat.

[MIner1448]

If centralized cryptocurrency exchanges cease to exist, this may lead to a decrease in liquidity in the cryptocurrency market and complicate the ability to exchange between fiat and cryptocurrency funds. This can reduce the demand for cryptocurrency and reduce its value. However, the cryptocurrency was created as a decentralized system, so the existence of centralized exchanges is not necessary for its functioning.
Moreover, there may be more innovative and secure ways to exchange cryptocurrencies between people, such as decentralized exchanges (DEX) or other technologies that allow the exchange of cryptocurrencies directly without the participation of centralized exchanges.

[paid2]

If major countries around the world decide to reject crypto/Blockchain tech sometime in the future, there's a high probability CEXs (centralized exchanges) will cease to exist. They will shut down their operations as crypto is declared "illegal" for mainstream use. Without an on/off ramp to/from the Fiat and crypto worlds, I wonder how would the industry survive?

Will a world without CEXs mark the end of crypto? I know crypto is decentralized, but the truth is that CEXs provide most of the liquidity of the market. DEXs are "second-hand" options that have their own set of issues. Either mainstream adoption for crypto/Blockchain tech starts to decline, or all the other way around. We've seen how exchanges have been "closing up shop" in the US due to strict regulations. What makes you think other countries will tighten regulations especially when they claim crypto can be used to avoid sanctions?

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

This is not an option because the authorities need the CEX more than us.
It's a great way to keep records  on who's doing what, who's got what, and the entire ecosystem in general.

Whether it's related to taxes, fraud, scams, money laundering, terrorist financing, and other reasons, governments have a strong interest in seeing CEX continue to be used extensively.

As long as there are CEX, regulations and laws should not be too unfavorable to cryptos in general. I'm convinced that if 90% of crypto exchanges were made via anonymous P2P, the laws and regulations would be much more intransigent and difficult for crypto users.

Personally, I would love to have a larger share of P2P in the traded volumes of the crypto ecosystem, but it doesn't seem to me to be really possible, most markets are now regulated and P2P is only a very small part of the exchanges. People seems to prefer to use big CEXs than Bisq

[Cornia]

In some countries regulations are very strict and cryptocurrency is banned. But still there people are using crypto because crypto space is anonymous. However, without CEXs, it will be difficult for the crypto industry to survive. But I think crypto lovers will surely find some new way to keep it alive.
I think crypto will gain more acceptance in future so no need to think negative.

[bussybuddy]

In the current context to bring this up, I really see a lot of things that can happen in the market. It is possible that the market will no longer be viewed positively for reasons of legal barriers, or it will be a truly decentralized environment for the economy when the market exists in a way. independent and not controlled by any other organization.
However, going back to the previous history when CEXs were not popular, how do we view this market, I am sure there are not many people willing to buy and sell them and find out what it is.

[Weawant]

We've seen how exchanges have been "closing up shop" in the US due to strict regulations. What makes you think other countries will tighten regulations especially when they claim crypto can be used to avoid sanctions?

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

I just believe the market can do without central exchanges and that's because decentralized exchange has been becoming popular recently and this started after the Defi trends started becoming more popular.

The overall volume in the market will drop but decentralized exchanging will gain more attention and developers will start competing with themselves to develop the best decentralized exchange that'll be very convenient to use.

You might think the exile of centralized exchange will be bad for the market but it might be the other way round which is, it might just be what the market needed to build more a decentralized community.

[stadus]

In some countries regulations are very strict and cryptocurrency is banned. But still there people are using crypto because crypto space is anonymous. However, without CEXs, it will be difficult for the crypto industry to survive. But I think crypto lovers will surely find some new way to keep it alive.
I think crypto will gain more acceptance in future so no need to think negative.

Although it's true that crypto can survive without centralized exchanges (CEX) and regulation, widespread adoption may be hindered without proper oversight. The lack of regulation could lead to a perception of crypto as a scam among the general public, which could potentially limit its growth. Moreover, investment is crucial for the growth of crypto as it reduces supply and increases demand, driving up the price.

[jrrsparkles]

If there is no more centralized exchange exist then more decentralized exchanges will pop up and the liquidity will shift as well but the problem towards the complete shifting to decentralized trading platforms will clog the blockchain so the fee will be so high which is somewhat similar to withdrawal fee of an centralized exchange. But the crypto won't disappear that easy since its already a huge market almost a trillion dollar industry if I am not wrong so it can't be taken down like that.

[Abiky]

This is not an option because the authorities need the CEX more than us.
It's a great way to keep records  on who's doing what, who's got what, and the entire ecosystem in general.

Whether it's related to taxes, fraud, scams, money laundering, terrorist financing, and other reasons, governments have a strong interest in seeing CEX continue to be used extensively.

As long as there are CEX, regulations and laws should not be too unfavorable to cryptos in general. I'm convinced that if 90% of crypto exchanges were made via anonymous P2P, the laws and regulations would be much more intransigent and difficult for crypto users.

Personally, I would love to have a larger share of P2P in the traded volumes of the crypto ecosystem, but it doesn't seem to me to be really possible, most markets are now regulated and P2P is only a very small part of the exchanges. People seems to prefer to use big CEXs than Bisq

You do have a point there, mate. It wouldn't make sense to ban CEXs, especially when they serve as a means for governments to track and trace crypto users. They can easily enforce the rule of law through a centralized exchange, than the Blockchain itself. While Bitcoin and most other cryptocurrencies are transparent by design, there's no direct link between an individual's identity to the transaction itself (unless they do some digging on the Blockchain itself). With CEXs requiring KYC, governments can achieve peace of mind in getting the info thwy want. I think regulations will become stricter over time, but not to a point where they will ban CEXs completely from the "face of the Earth". No one can predict the future, so we can only hope for the best. Just my opinion