What's your take on all CEX being regulated?

[TheVeteranAngel]

If not DEX, then I think there is no way we can completely eradicate the issue of fraud from CEX except if they are in total compliance to government authorities. Most of us don't like that right? I know the answer is yes but for how long shall will continue to hear same stories once every two years or less.

Many of us are always fighting against SEC but I think it's high time we look at the positive side of the organization though I personally dislike Gary Gensler.

Few days ago, the issue of Kucoin was circulating about some of the exchange executive involvement in money laundering act, if not for SEC, perhaps we could be talking of another FTX right now which could have impacted the market negatively considering the size of Kucoin in the market. Anyways, am glad SBF has been sentenced and I hope this serves as deterrent to other crypto exchange executive but the question is should we leave our fate in the hands of this individuals. DEX on the other hand is not a soft landing as well due to its inherent nature and risk involvement.

Perhaps the reason I have a feeling all exchanges should be regulated. On the second thought, considering Nigerian government demanding for details of top traders from Binance due to the fiasco between the two, is it really safe for users as well? So many questions popping up in my head. Do you think we can get to a point where we can say an exchange has spent over 10 to 20 years without any drama. Do you see this possibility? Let's discuss

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[Potato Chips]

If not DEX, then I think there is no way we can completely eradicate the issue of fraud from CEX except if they are in total compliance to government authorities.

It's impossible to completely eradicate fraudalent transactions because there is no system that accurately filters such transactions.

People have also been bypassing the KYC imposed by exchanges for years -- buying and selling of verified accounts are rampant. It'd be interesting how things would change with AI/deepfake tech rapidly improving. Faking documents has existed for decades but AI tech is expected to provide more accuracy with far less effort needed and probably will be more accessible to average people.

[TheVeteranAngel]

If not DEX, then I think there is no way we can completely eradicate the issue of fraud from CEX except if they are in total compliance to government authorities.

It's impossible to completely eradicate fraudalent transactions because there is no system that accurately filters such transactions.

People have also been bypassing the KYC imposed by exchanges for years -- buying and selling of verified accounts are rampant. It'd be interesting how things would change with AI/deepfake tech rapidly improving. Faking documents has existed for decades but AI tech is expected to provide more accuracy with far less effort needed and probably will be more accessible to average people.

Really! bypassing KYC, never heard of that really. However my emphasis is how to curtail the activities of some CEX CEO from running away with investors funds overnight. My thought is weather fully compliance to government regulation will help just like the traditional banking system....

[Alone055]

Really! bypassing KYC, never heard of that really.

It's not bypassing actually, that wouldn't be the right word to use here because to bypass means to go around without having to face something, what people who don't want to use their identities do is buy accounts or create accounts with the name of other people and make them verify those accounts so that they can use them for any purpose, mostly scamming or fraud or money laundering. They pay money for this, and those who are in need of money would be ready to do that.

However my emphasis is how to curtail the activities of some CEX CEO from running away with investors funds overnight. My thought is weather fully compliance to government regulation will help just like the traditional banking system....

I'm not sure whether full compliance is required or not, but as far as I know, most centralized exchanges do have to comply with the authorities, especially to acquire licensing to operate within a certain jurisdiction, and when they do that, they probably need to give all the details about the team and stuff.

[electronicash]

10 to 20 years without drama is too long. crypto market always needs a crisis to make the price dip otherwise the market will just be a horizontal line. the halving is there to make the price jump and then new drama has to come so bears can take over again for one or two years.

these dramas are part of the cycle, if not China bans or exchanges CEOs dying or scamming then google and facebook ban ads again. but i'm guessing the next drama before the bears take over is the government tracking BTC buyers for cash and confiscating BTC.

[tabas]

Do you think we can get to a point where we can say an exchange has spent over 10 to 20 years without any drama. Do you see this possibility? Let's discuss

Basically, no. I think that their involvement with every bull run is so high that they're coming to the point that if they want to influence the market, they can do it easily without any problem at all because all they have to do is to make some issue and get the media and cover it for them. Whilst the SEC, we hate it but they're probably just doing their job but we all love them now when they're able to approve most of the Bitcoin ETFs that have applied for. We probably don't like them still if it's not for the ETFs that have made such a huge improvement for the price of Bitcoin. As for these dramas, any issue can be thrown to them whether they're real or not and that's the kind of drama that we're going to see nonstop from staying on this market.

[rat03gopoh]

However my emphasis is how to curtail the activities of some CEX CEO from running away with investors funds overnight.

In fact, I don't know if there are any specific restrictions on exchange CEOs when it comes to managing funds. From a user perspective, such regulations target us more for money laundering and terrorist financing risks.
It feels like it's easier to catch someone known (like the CEO of an exchange) than random users from various locations, after all that would involve almost all of the exchange's funds being taken over investigated.

[mindrust]

Treat CEX like how you treat any other bank. Actually CEX are even worse than banks. Banks may freeze your funds without a reason too but it happens less frequently while I hear CEX locking people's accounts every day. The worst part is, when a bank locks your account, they usually let you withdraw your money and take your business elsewhere immediately. When a CEX does it, they don't let you do anything till their investigation is over.

I despise CEX but I also still don't know a DEX which is decently popular. Bisq has been around for a long time but it is like it never gained popularity. I have found about Guarda Wallet (it is listed on dogecoin.org) but there are many scam accusations against them on reddit so it is another shitty app.

[Kelward]

The drama of CEX never ceases, there's always issues with their CEO or hack related scams, both renowned and reputable exchanges and local exchanges, I guess that is why it's advisable not to leave your coins in any exchange because if it's not your keys it's not your coins. If CEX regulations will protect investors funds then I'm all in for it, because what's the essence of none KYC when you're not sure of the safety of your assets in them. Drastic times calles for drastic measures, so I personally don't worry about KYC and regulations, what I worry about is the safety of my coins and transactions in the CEX.

[hugeblack]

There is also hacking in DEXs and some of them are even worse than FTX.
Are you confident that regulations and full compliance with government authorities will mean that depositors' funds are safe? There are banks that are considered highly regulated. However, these banks go bankrupt and their debts to customers are rescheduled, or some insurance agencies intervene to insure deposits of less than $250,000.

[examplens]

A possible solution for this problem could be a system like the one used by banks. Where everyone is obliged to give a proportionate amount of deposit to the central bank and these funds serve as cover for any disputes that may arise. This would perhaps encourage exchanges to take more careful care of their users' entrusted funds.

Few days ago, the issue of Kucoin was circulating about some of the exchange executive involvement in money laundering act, if not for SEC, perhaps we could be talking of another FTX right now which could have impacted the market negatively considering the size of Kucoin in the market.

Don't confuse accusations of money laundering because they didn't have rigorous KYC with misappropriation of user funds.

Do you think we can get to a point where we can say an exchange has spent over 10 to 20 years without any drama.

Did you hear about Bitstamp?
There were no significant dramas related to them. Bitstamp was founded in 2011, 13 years ago. So it's possible

[Darker45]

I am highly in favor of regulating centralized exchanges. They have to be regulated. For me, the contentious issue isn't whether they need to be regulated or not; it's rather the specific regulatory policies that would be implemented.

Taxes, for example, could only follow regulations. That itself is enough reason for these companies to be subjected to regulations. Also, they're custodians. It is, therefore, their responsibility to look after and secure the funds of their clients. That is a big commitment. It's just right that the government makes sure these businesses are taking such responsibility seriously. There has to be a way to make sure that the owners or CEOs of exchanges aren't gambling their clients' money away, or used them to buy personal properties and live a lavish life, or risk them somewhere else.