What if DEXs are banned in the future?

[crwth]

I believe this would depend on the regulations put in place by the different governments, like how they will heavily check out what's happening to possibly remove the money laundering stuff. I think that's the biggest concern for regulating bodies. It would be hard to do but I think that could be the next one.

[Abiky]

I hate to admit it but that's it. A country that has no benefit over a service that runs on their jurisdiction will have no doubt will ban a service like a dex.

They can ban it so that their citizens won't use it but they can't close or stop its operation. They just can simply ban the website from the IP of theirs.

It is also happening in centralized exchanges where countries are banning the likes of Binance because they are unregistered.

Only if the domain is hosted on a centralized service. After all, ICANN controls all common TLDs (.com, .net, .org, etc). What the government can't censor are decentralized domains. I'm talking about those running on blockchain networks such as Namecoin and Ethereum. A frontend interface for Uniswap hosted on a decentralized CDN or P2P network with a decentralized domain name would surely do the trick. I've seen Uniswap's code hosted on IPFS, so anything's possible.

Most developers are afraid of the government, so they will try to avoid getting involved in the development of a truly-decentralized and censorship-resistant crypto exchange. Those that do will have their identity hidden from the general public (anonymous). It's hard to find someone who cares about anonymity/privacy these days. We should expect centralized exchanges to continue dominating the industry for long. The future can't be predicted, so lets hope for the best.

[tjtonmoy]

If people are getting some kind of advantages from decentralized exchanges, they will surely come up with something if the government tries to ban the process. Look at Bitcoin. It is not being operated by a single person but by many people across the whole world. What if we can make something similar for decentralized exchanges.
Not being operated by single entity, instead people all over the world will have some kind of connection in order to keep it alive so that no law enforcement can track it down to its core and stop it or destroy it.
I don't know if that is possible but after seeing Bitcoin technology, I think people will be able to make something like this in the future for sure which will ensure no interference from the law enforcement. So that people will have full access to their assets and their privacy.

[Bushdark]

I believe this would depend on the regulations put in place by the different governments, like how they will heavily check out what's happening to possibly remove the money laundering stuff. I think that's the biggest concern for regulating bodies. It would be hard to do but I think that could be the next one.

We don't need to keep receiving ourselves of money laundering. This is will always continue and it's not even today that all these started.
We are going to be seeing cases of money laundering everytime and the government should not think that every issues of money laundry will stop with crypto. This had been in existence before now and we should not see cryptocurrency as a safe heaven because money laundry had been in existence even before I was born and we should not think it's going to stop soon.

[electronicash]

I hate to admit it but that's it. A country that has no benefit over a service that runs on their jurisdiction will have no doubt will ban a service like a dex.

They can ban it so that their citizens won't use it but they can't close or stop its operation. They just can simply ban the website from the IP of theirs.

It is also happening in centralized exchanges where countries are banning the likes of Binance because they are unregistered.

Only if the domain is hosted on a centralized service. After all, ICANN controls all common TLDs (.com, .net, .org, etc). What the government can't censor are decentralized domains. I'm talking about those running on blockchain networks such as Namecoin and Ethereum. A frontend interface for Uniswap hosted on a decentralized CDN or P2P network with a decentralized domain name would surely do the trick. I've seen Uniswap's code hosted on IPFS, so anything's possible.

Most developers are afraid of the government, so they will try to avoid getting involved in the development of a truly-decentralized and censorship-resistant crypto exchange. Those that do will have their identity hidden from the general public (anonymous). It's hard to find someone who cares about anonymity/privacy these days. We should expect centralized exchanges to continue dominating the industry for long. The future can't be predicted, so lets hope for the best.

something like the IPFS for the server of the dex website may be the most decentralized but seems not possible yet. the project Filecoin was supposed to function this way afaik, its development however is just too slow. if there is something like decentralized storage, it will mean the government will not be able to shut down a website.

but there are wallet apps today with built-in exchanges, i think this is working as decentralized.

[Abiky]

If people are getting some kind of advantages from decentralized exchanges, they will surely come up with something if the government tries to ban the process. Look at Bitcoin. It is not being operated by a single person but by many people across the whole world. What if we can make something similar for decentralized exchanges.
Not being operated by single entity, instead people all over the world will have some kind of connection in order to keep it alive so that no law enforcement can track it down to its core and stop it or destroy it.
I don't know if that is possible but after seeing Bitcoin technology, I think people will be able to make something like this in the future for sure which will ensure no interference from the law enforcement. So that people will have full access to their assets and their privacy.

DEXs are already based on Peer-to-Peer technology. Why do you think most of them have code executed on a Blockchain network (smart contracts)? But if you're talking about hosting the interface on a P2P network such as IPFS or Zeronet, that's another subject. The only DEXes that are truly-decentralized would be Bisq and Block DX. They can only be accessed by downloading and installing the software on your PC. For advanced users, it's possible to access Uniswap by directly interacting with the smart contracts through a CLI.

Governments usually come up with new tactics to try to prevent decentralized tech from gaining traction. The community must remaim vigilant by supporting decentralization/censorship-resistance whenever possible. Who knows what will happen in the future?

[dderekwalcott]

Bitcoin is born with block chain technology.The function of block chain is to keep all the information secure. If the authorities have to control or hold someone accountable, then there is no need for this block chain technology and transactions can be done through the central bank. So in my opinion if DEXs are banned then it can have serious impact for the crypto currency ecosystem. DEXs operate without a central authority, allowing users to trade directly with each other using smart contracts and blockchain technology.So i think that  if any countries government want to do that it will never be done .

[Out of mind]

I think if DEX exchanges are banned in future, then crypto will suffer a lot. But they won't die but come up with an alternative, probably because if an exchange is banned, they'll probably use an alternative method later, just like if the dex exchange is banned, they might come up with an alternative later. Even if the government introduced such laws and put people in jail and fined them, most people would not use such exchanges, and they would lose a lot of money. Although most people prefer exchanges without KYC just for their privacy, but if the government uses such a system that is mandatory, then this law must be obeyed.

[Publictalk792]

DEX become popular because they dont need intermediaries or central control which gives users more privacy and security.
But it is important to know that decentralized technology is hard to completely get ban.Blockchain networks are decentralized and people can use them anonymously so it is difficult for authorities to track and shut down these platforms. But thing is that cryptocurrencies are used all over the world so even if DEX are ban in one place they can still be used in other places where the rules are more friendly.
Just for an example Crypto is ban in my country but I am still using the cryptocurrencies CEX DEX and the other platforms. If will impact for a while when the news will come but after that the market will become to its level again.

[Mate2237]

If the Decentralized Exchange is real a Decentralized Exchange then I don't think it is possible for the SEC to ban it and just like they can't ban other decentralized projects but whereby the DEX is not active as the name applies then the SEC can shut them down and other Centralized Exchange or the way they are doing to mixers. Probably they have even tried their best to check the money laundering that is going on there but because they can't have access to the site, they can't do anything for now. But we have to know that not all the DEX are real DEX. There are some that are just bearing the name.

[|MINER|]

Nothing can be do if the government hunts down the developer of dex's but I don't think that it will be happening at once on all places. And I think if they do the banned on dex's there will be must different way will invented. Moreover, If those dex's developers and owners hide their identity like as the founder of bitcion sathosi then government will nothing can do if they ban on dex's on future.

[BitcoinsGreat]

Nothing can be do if the government hunts down the developer of dex's but I don't think that it will be happening at once on all places. And I think if they do the banned on dex's there will be must different way will invented. Moreover, If those dex's developers and owners hide their identity like as the founder of bitcion sathosi then government will nothing can do if they ban on dex's on future.

DEX are decentralized so how can they be banned ?

Even if the government are strict toward the adoption of crypto currencies, they can only ban the centralized exchanges but it is not possible to ban the dexes. Just like no one can ban bitcoin, the same goes true for the decentralized platforms.

[Volimack]

Honestly the government only enforces its mandate on the centralized constitution and has no control over the decentralized sites. Crypto exchanges are linked to investment demand. Cannot ban DEXs relying on differentiating blockchain innovations within the crypto market must strategically differentiate the project and capture the attention and support of a highly competitive potential investor. Study existing token platforms with which to compete.

[MFahad]

Governments seem to come up with something new to prevent crypto from achieving its full potential. From cracking down on mixers and enforcing KYC across centralized exchanges, they aim keep crypto under their control. The only things they can't manipulate or enforce the rule of law (aside from blockchain networks themselves) are decentralized exchanges. 

Government cracked down only those mixers who catched for black money support lik one start from C and other from S while all other mixer are working fine and have not faced any issue from government. Decentralization doesn't mean that we will support bad people/bad operation. Tell me If some one hack your wallet and government catch it and punish it, whom you will support?

What do you think will happen if DEXs are "banned" in the future? Will they die? Or will they still survive (despite the fact that most people will avoid them to prevent jail time or being fined)?

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

How will dex banned when they are fully anonymous? Have btc banned despite of huge efforts from world? In my country crypto is fully banned but it's doesn't affected single person and we are doing all crypto operation buying/selling, holding without any problem. DEX will not be banned as longer as team are fully anonymous.

[criptoevangelista]

Banned I think is very difficult, as everything is decentralized, but devs can be persecuted, but it is easy to circumvent, just don't use your real name and everything else, use pseudonyms and bitcoin as currency: problem solved

[Sophokles]

Banned I think is very difficult, as everything is decentralized, but devs can be persecuted, but it is easy to circumvent, just don't use your real name and everything else, use pseudonyms and bitcoin as currency: problem solved

Everything is not decentralized as all these cryptographic web applications are still using centralized servers like AWS and other alternatives. If government wants, they can force these companies to shut down their applications or ban those URL in a particular region. If they ban the URL then people will use VPN but for the centralized storage part there are projects that are offering decentralized storage services that can be used to tackle government interveining. I think most of the projects will start using decentralized storage solution at some point in the future.

[Abiky]

Government cracked down only those mixers who catched for black money support lik one start from C and other from S while all other mixer are working fine and have not faced any issue from government. Decentralization doesn't mean that we will support bad people/bad operation. Tell me If some one hack your wallet and government catch it and punish it, whom you will support?

I'd support the government only if it catches the criminals. But when it goes too far (violating privacy rights, promoting censorship), that's when we need to find alternatives that put decentralization/censorship-resistance/privacy above all else. It's all about making the system neutral (eliminating the middleman) for a greater good.

How will dex banned when they are fully anonymous? Have btc banned despite of huge efforts from world? In my country crypto is fully banned but it's doesn't affected single person and we are doing all crypto operation buying/selling, holding without any problem. DEX will not be banned as longer as team are fully anonymous.

Of course not. If developers of the DEX are anonymous, there's no way governments will be able to enforce the rule of law. Unfortunately, most developers reveal their identities to help bring the confidence of mainstream investors. They claim their project will be tagged as a "scam" if no one knows who they really are (anonymous). Seriously? Does this mean we should call Bitcoin a "scam" because of its unknown creator (Satoshi Nakamoto)? Absolutely not.

I guess truly-decentralized exchanges will remain a "niche" only used by those who actually care about privacy and freedom. They are quite small compared to their centralized counterparts. We can only guess the industry will become more centralized in the future. Nothing is set in stone yet, so lets hope for the best.

[tygeade]

something like the IPFS for the server of the dex website may be the most decentralized but seems not possible yet. the project Filecoin was supposed to function this way afaik, its development however is just too slow. if there is something like decentralized storage, it will mean the government will not be able to shut down a website.

but there are wallet apps today with built-in exchanges, i think this is working as decentralized.

I would guess that when you are dealing with servers, it is really not that hard to find one that will not be taken down. Banned? Sure, but banned is not the same as taken down and that should be important.

Plus, you could literally have your own server, what we call a "server" is just a pc, I mean of course bigger ones look different, but if you could just have one pc that is running 7/24 then you will be fine, or you could even buy one of those server looking servers and not a pc, and that would run non-stop and you will not need anyone else. Want even bigger independence? Put some solar panels that means you are going to end up with non-stop electricity as well if you can get enough sun light to it.

So there are very few things, but it is possible to keep it running forever. I believe that is not going to be possible if you build it at New York though, you also have to pick a place that government won't try to reach and stop you, has to be somewhere with more easy laws.

[KingsDen]

But what if governments decide to hunt down the developers of DEXs? Or what if they estalish a law where developing a non-compliant DEX (no-KYC) can be subject to prosecution (jail time or fines)? If that happens, the industry will be doomed. With a US senator drafting the "Digital Currency Anti-Money Laundering Act of 2023", anything's possible.

I had thought that you asked if government decides to hunt down DEXs, not untill I read that you meant that if the government hunt down the DEX developers. These are two different things. For the former, government cannot shut down a true decentralized exchange whose protocol is 100% open source. Then about the later, a true decentralized developer cannot be tracked by the government when he goes anonymous and private. And besides, if a particular government proves stubborn, there's room for relocation.

I think the fear people have with these governments ban this and that should be alleviated with the recent change of tunes from different government all over the world, what they can do is to find a way to control it, ban as not really work, especially for things with huge demand like drug, people will find a way round it.

I have always maintained my statement. In as much as there's no central government of the world, it will be difficult for government to implement their shutting agenda. While one government will ban DEX today, another will approve it.

[Blitzboy]

Countries might crack down on DEXs. I mean, they've tried to put a leash on everything from the internet to music sharing, right?

My takeaway is that the crypto community is robust. I bet my last Satoshi that anonymous contributions would rise if governments targeted DEX devs. Imagining a decentralized resistance movement is poetic, right? Legislation targeting non-compliant DEXs is like regulatory whack-a-mole. One goes down, two more pop up.

Acknowledge the global stage. Some countries may go "big brother" on DEXs, but others may embrace them. Due to the internet and DEXs' nature, they can operate worldwide. Tor is a refuge for the digitally displaced. Will DEXs survive bans? Yes, they will. They do well in the darkest parts of the web and are always one step ahead of the authorities. Guess which mouse has a jetpack in the cat-and-mouse game?