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

[Kgdktac]

The decentralized nature of the Blockchain technology means that it can continue to exist and thrive outside of traditional institutions and systems.
it is also possible that regulations may evolve to accommodate the use of crypto and blockchain technology rather than outright rejection.
 It is important for the industry to work with regulators to establish guidelines and standards that can facilitate the integration of crypto and blockchain technology into the mainstream economy.

Additionally, while centralized exchanges currently provide the majority of liquidity in the market, there are also decentralized exchanges and other alternative liquidity sources that can provide support. As the industry continues to evolve and mature, it is likely that we will see new innovations emerge to address these challenges.

Overall, while there are certainly risks and challenges associated with the potential rejection of crypto and blockchain technology by major countries, it is important to remember that the industry is still in its early stages and has a lot of room for growth and development

[Psynthax]

honestly i'd say these cex are the one that contributes to giving education towards many of the newer users, they are willing to spend money in educating at how investments work etc, in which I think is the reason we could get this far, therefore crypto world without centralized exchange would be drastically different than it is nowadays.

[AmoreJaz]

The decentralized nature of the Blockchain technology means that it can continue to exist and thrive outside of traditional institutions and systems.
it is also possible that regulations may evolve to accommodate the use of crypto and blockchain technology rather than outright rejection.
 It is important for the industry to work with regulators to establish guidelines and standards that can facilitate the integration of crypto and blockchain technology into the mainstream economy.

Additionally, while centralized exchanges currently provide the majority of liquidity in the market, there are also decentralized exchanges and other alternative liquidity sources that can provide support. As the industry continues to evolve and mature, it is likely that we will see new innovations emerge to address these challenges.

Overall, while there are certainly risks and challenges associated with the potential rejection of crypto and blockchain technology by major countries, it is important to remember that the industry is still in its early stages and has a lot of room for growth and development

the situation without CEXs is hard for the crypto community, but if that will happen, definitely, the market will evolve into something people will appreciate also. it is not the case that we don't have choice but maybe, something innovative will come up. i don't think crypto people will just give up to what we have right now.

[justdimin]

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.

I think regulation would definitely allow the crypto world to grow because it opens the door for so much more money. CEX being so legit in so many nations matter because of this, for example Coinbase is so legit that they literally had an IPO and their stock is traded on the market, that means SEC is all over them for every single cent, and that means they are as legit as they can get, there is absolutely not a single cent that is illegal in their books, and when people now this, buying bitcoin there feels a lot better.

Even one step on wrong direction would make them lose tens of millions of dollars in fines, so they have to operate it honestly and as well as it can be.

[SquallLeonhart]

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.

The benefits are highly overweighting the troubles of it. I think there are governments and all that trying to take control over these companies, not in a CEO type of way, not in a lets take control of it and run it ourselves type of way, but basically be under their wings and do not go out of their way and just follow it, like whatever they told the company to do, type of way.

But, since crypto is a decentralized thing and exchanges can be run from anywhere around the world, they fail to do that. Which is why I believe that it is not going to be as easy as people think it could be. Hence, exchanges will continue to be freely used whenever we want to.

[Abiky]

The benefits are highly overweighting the troubles of it. I think there are governments and all that trying to take control over these companies, not in a CEO type of way, not in a lets take control of it and run it ourselves type of way, but basically be under their wings and do not go out of their way and just follow it, like whatever they told the company to do, type of way.

But, since crypto is a decentralized thing and exchanges can be run from anywhere around the world, they fail to do that. Which is why I believe that it is not going to be as easy as people think it could be. Hence, exchanges will continue to be freely used whenever we want to.

The only exchabges than "can be run from anywhere around the world" are decentralized ones. Centralized ones, on the other hand, can be easily shut down or seized by mainstream governments. These entities can directly enforce the rule of law on a CEX because there's someone behind it to hold accountable for his/her actions. In other words, there's a middleman that's in-charge of the CEX.

While I don't think every CEX in the world will disappear, regulations will increase to a point where only a "small few" will remain on the industry. I wouldn't worry about this as long as crypto/Blockchain tech remains decentralized and censorship-resistant. Who knows if big names like Binance and Coinbase will survive in the future? Just my opinion

[SyndicateLabs]

As you mentioned, centralized exchanges now provide most of the liquidity of the cryptocurrency market. However, using centralized exchanges also carries risks, including the risk of loss of safety and security, and the possibility of being regulated or shut down by governments. A world without a centralized exchange (CEX) is not necessarily the end of cryptocurrencies. However, it can cause some difficulties for the liquidity and trading of cryptocurrencies. But I can speculate more about new things coming out and changing people's usage behavior, and if the government really takes the positive side of this industry seriously, then whether CEX or DEX just as a means of connection.

[jaberwock]

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.

The benefits are highly overweighting the troubles of it. I think there are governments and all that trying to take control over these companies, not in a CEO type of way, not in a lets take control of it and run it ourselves type of way, but basically be under their wings and do not go out of their way and just follow it, like whatever they told the company to do, type of way.

But, since crypto is a decentralized thing and exchanges can be run from anywhere around the world, they fail to do that. Which is why I believe that it is not going to be as easy as people think it could be. Hence, exchanges will continue to be freely used whenever we want to.

We also need to remember that when people say CEX, they do not mean just binance or coinbase, they also mean the one that has less than 20 million volume in the website as well. That alone is a very scary situation and should be avoided as much as possible. I know that it is not going to be that simple, but it should be reminded to everyone who thinks that those CEX's are trustworthy.

I am sorry but a place with just 20 million or less volume can't make enough from trading profits to just pay for a security specialist let alone anything else. They cost as much as 10-20k per month if you hire someone who is good, and I mean really good. And any place that sees that as not important, should be avoided by all means.

[alik111]

Crypto adoption is happening rapidly and I think there is a very little chance to be restricted crypto worldwide. Either Crypto will be more popular and Cex exchanges will be more trusted in future. If accidentally Cex exchanges exits then Dex exchanges should develop more by adding good features otherwise it will be a very backdated experience to continue with only dex exchanges.

[Silberman]

As you mentioned, centralized exchanges now provide most of the liquidity of the cryptocurrency market. However, using centralized exchanges also carries risks, including the risk of loss of safety and security, and the possibility of being regulated or shut down by governments. A world without a centralized exchange (CEX) is not necessarily the end of cryptocurrencies. However, it can cause some difficulties for the liquidity and trading of cryptocurrencies. But I can speculate more about new things coming out and changing people's usage behavior, and if the government really takes the positive side of this industry seriously, then whether CEX or DEX just as a means of connection.

Assuming that somehow centralized exchanges were banned all over the world then this will be without a doubt a very strong blow against this market, as people are simply too accustomed to use the services centralized exchanges provide, and while decentralized exchanges could provide some volume to this market it would not be enough, and with this in mind I think a dramatic decrease on the price of all coins could follow and create a new crypto winter.

[Hypnosis00]

If we have the option to stop CEX from collapsing, I know we have to do it. But given that case, therefore, we leave no option but to use DEX. Should we think it was worrying, I guess not.
The crypto world without Centralized remains strong, it might cause a huge impact on the market but never I think it ended as people will start using decentralized exchanges as well. In fact, not all traders and investors are using CEXs. And despite this speculated scenario, still crypto remains legal unless is declared illegal in a particular place or country.

[SyndicateLabs]

~

Assuming that somehow centralized exchanges were banned all over the world then this will be without a doubt a very strong blow against this market, as people are simply too accustomed to use the services centralized exchanges provide, and while decentralized exchanges could provide some volume to this market it would not be enough, and with this in mind I think a dramatic decrease on the price of all coins could follow and create a new crypto winter.

This I can envision, but what happens after that?

Will people stop using crypto anymore?

And I think not, even though the crypto winter may be long, but I understand the potential this field brings, but the current regulatory hurdles only make this market stronger, not the end.

[AakZaki]

Crypto adoption is happening rapidly and I think there is a very little chance to be restricted crypto worldwide. Either Crypto will be more popular and Cex exchanges will be more trusted in future. If accidentally Cex exchanges exits then Dex exchanges should develop more by adding good features otherwise it will be a very backdated experience to continue with only dex exchanges.

the development of the DEX exchange has also been quite rapid and more and more features are being provided. In fact, many new blockchains are emerging with various DEXs supporting them. CEX may still be needed to bridge the gap between crypto and fiat money, because everyone still needs fiat. The crypto world without CEX still doesn't seem like it will happen, CEX are getting serious attention from the government and will be supported if they continue to pay taxes regularly. Like it or not CEX is still needed.

[b9ron]

If you ban CEX worldwide, crypto it will still usable peer 2 peer. But of course you'll kill 100% of the crypto using public ledger.

And privacy coin will trive, Monero will become the new BTC, Dero the new Ethereum and that's it the Defi and NFT will still be there but they'll be running on Dero instead of Ethereum. So banning public crypto is a lose for government because they'll lose the traceability but crypto will be still here protecting people from government tyranny.

[Silberman]

Assuming that somehow centralized exchanges were banned all over the world then this will be without a doubt a very strong blow against this market, as people are simply too accustomed to use the services centralized exchanges provide, and while decentralized exchanges could provide some volume to this market it would not be enough, and with this in mind I think a dramatic decrease on the price of all coins could follow and create a new crypto winter.

This I can envision, but what happens after that?

Will people stop using crypto anymore?

And I think not, even though the crypto winter may be long, but I understand the potential this field brings, but the current regulatory hurdles only make this market stronger, not the end.

The most likely outcome is that we will simply adapt, when I first became part of this market, centralized exchanges were already a thing, however I made some peer to peer trades back in the day and that is how I got my first coins, so for a time there will be a lot of confusion about how to keep buying and selling our cryptocurrencies, but once people realize centralized exchanges will not comeback then a great deal of effort will be put forward to increase the appeal of decentralized exchanges.

[Farma]

If we have the option to stop CEX from collapsing, I know we have to do it. But given that case, therefore, we leave no option but to use DEX. Should we think it was worrying, I guess not.
The crypto world without Centralized remains strong, it might cause a huge impact on the market but never I think it ended as people will start using decentralized exchanges as well. In fact, not all traders and investors are using CEXs. And despite this speculated scenario, still crypto remains legal unless is declared illegal in a particular place or country.

yes, but the impact will still be severe. we don't know what regulations will be in the future regarding crypto, however, until now the government also seems to be benefiting from the use of crypto, that's why there are still very many legal CEX companies, even though it's quite heavy because of the large amount of FUD. However, I also think that if that does happen, then DEX will be the only option we have. and at worst, a large price drop will occur in crypto.

[Apocollapse]

If you ban CEX worldwide, crypto it will still usable peer 2 peer. But of course you'll kill 100% of the crypto using public ledger.

And privacy coin will trive, Monero will become the new BTC, Dero the new Ethereum and that's it the Defi and NFT will still be there but they'll be running on Dero instead of Ethereum. So banning public crypto is a lose for government because they'll lose the traceability but crypto will be still here protecting people from government tyranny.

Is there any coin can't be send via P2P? that's really a shitcoin. Public ledger is just a public ledger, where anyone can see address, transaction, balance and other public information.

Nah Monero is Monero and it will not replace Bitcoin because both of them are different, you can't track Monero transaction in a public ledger. Government can ask the centralized coin CEO to give them access, so they can still track the coins without CEX. But for decentralized coin, the government don't have any way.

[Mr. Magkaisa]

    -   At this time, it is the US that is doing a bit of pressuring the CEX platforms located in their territory. If that's the case, the CEXs that closed there will for sure move to a country where they can operate.

Also, even if CEX disappears, there are still DEXs connected to P2P gateway payment and one of them as far as I know is Bitcoin.global and other DEXs in this field of business.

[redsun114]

The most likely outcome is that we will simply adapt, when I first became part of this market, centralized exchanges were already a thing, however I made some peer to peer trades back in the day and that is how I got my first coins, so for a time there will be a lot of confusion about how to keep buying and selling our cryptocurrencies, but once people realize centralized exchanges will not comeback then a great deal of effort will be put forward to increase the appeal of decentralized exchanges.

I agree, I was part of that period where we barely had any exchanges, just a few, and during that time there was none in my nation for locally doing it. So I did some peer to peer anyway, and these days we could go back to that if we need to.

Regular crypto trades within the market could be done by decentralized exchanges that is fine and there is nothing to change there, it would be great for DeFi world and most high name projects there like uniswap or pancakeswap would go up a lot. However, if we want to talk about how we can turn our fiat into crypto or vice versa, that would happen with p2p trading and there are websites for that too like localbitcoins if it still exists. That's what we will go back to and still be fine.

[Abiky]

Assuming that somehow centralized exchanges were banned all over the world then this will be without a doubt a very strong blow against this market, as people are simply too accustomed to use the services centralized exchanges provide, and while decentralized exchanges could provide some volume to this market it would not be enough, and with this in mind I think a dramatic decrease on the price of all coins could follow and create a new crypto winter.

That's certainly true, mate. Crypto asset prices will decline, as institutional investors and VCs will no longer be in the game. The vast majority of people worldwide, wouldn't want to use something that's "outlawed" by the government. DEXs might be a solution against government censorship, but they're not as good as their centralized counterparts in terms of liquidity and user experience.

While the odds of CEXs becoming extinct in the future are slim, we should be prepared for the worst especially when most governments are about to launch CBDCs of their own. Who knows how would crypto fare in the future once CBDCs take over the world? Just my thoughts