What if Most Centralized Exchanges are Banned?

[ContentWriter]

Some countries already blame crypto for their economic woes. We saw this with the harassment of some crypto executives and even jail terms for some. What will happen to Bitcoin and other cryptocurrencies if most countries ban centralized exchanges? What steps are the crypto enthusiasts taking to preempt this?

[_act_]

Among 195 countries in the world, over 180 countries support bitcoin and altcoins in one way or the other that people can buy and sell them. If cryptocurrencies are still existing, all centralized exchanges can not be banned.

There are also other ways to trade cryptocurrencies if centralized exchanges are banned. There are decentralized exchanges and there are trading between people without exchanges involved.

[Helena Yu]

It will be a good thing because eliminating centralized exchange mean encouraging people to use DEX or P2P.

I will be very happy if most country choose to ban centralized exchanges, this would strengthen the decentralization and the market will be mature because they will learn how to self custody their coins. There have been many centralized exchanges getting hacked or bankrupt, the victim will say Bitcoin is scam if they hold the coins in CEX, unfortunately most people never learn about it.

[Haunebu]

BTC and other popular cryptocurrencies would fall in value for a certain time period after which they would rise back again if such a situation were to ever happen and history has clearly proven that.

This is why crypto enthusiasts don't require to take any steps to tackle this stuff since world governments can't take down BTC and other popular cryptocurrencies no matter what.

[Frankolala]

If centralized exchanges are banned, it will be a big problem for traders and those who are keeping their coins in CEx. However, it will be the best thing that will happen to bitcoin because automatically, the government have helped to promote self custody and the use of bitcoin in a decentralized way.

Decentralized exchanges are there for people to use to trade their bitcoin to fiat. Physical p2p will also be used. I have a mall where trade my BTC to the manager.

[Poker Player]

Since you apply creativity to writing, you could consider what would happen if banks were banned, while you're at it. CEXs collaborate with the system and the political power, just like banks. The probability of them being banned, especially worldwide, as _act_ points out, is close to 0.

[Kruw]

Some countries already blame crypto for their economic woes. We saw this with the harassment of some crypto executives and even jail terms for some. What will happen to Bitcoin and other cryptocurrencies if most countries ban centralized exchanges? What steps are the crypto enthusiasts taking to preempt this?

Bitcoin existed before Bitcoin exchanges did, so there's no problem. You can just buy goods and services with Bitcoin, adding a fiat middleman is just friction.

[CageMabok]

Some countries already blame crypto for their economic woes. We saw this with the harassment of some crypto executives and even jail terms for some. What will happen to Bitcoin and other cryptocurrencies if most countries ban centralized exchanges? What steps are the crypto enthusiasts taking to preempt this?

Logically, will people who do not use crypto always be prosperous and not miserable by relying solely on fiat money whose value is completely uncertain and even goes down? And if there are countries that consider crypto to be a bad thing and punish crypto users based on their misery, what about the people who have succeeded through crypto with the financial freedom that has been abundant in their lives? Will they also be punished even though we only show them as real examples for such clear proof?

I think that currently there are still countries like that, maybe these countries are led by people who are technologically illiterate and don't want to accept the latest technological developments through anything, including through crypto. Because misery or distress is a pure thing that arises from each of us, so no one should blame one thing, such as crypto or anything else. Another example is when people get drunk because of alcoholic drinks, should we blame the drink maker by not seeing ourselves as those who drink it?

[Lucius]

Since you apply creativity to writing, you could consider what would happen if banks were banned, while you're at it. CEXs collaborate with the system and the political power, just like banks. The probability of them being banned, especially worldwide, as _act_ points out, is close to 0.

The system allows CEXs to exist, but it also has the power to ban them, so although the chances of that are very small, I think they still exist in a scenario where some world governments would decide to deal with cryptocurrencies by declaring them illegal. This will not happen as long as the main focus is on trading, and minimal on using cryptocurrencies as a means of payment.

[Reatim]

What will happen to Bitcoin and other cryptocurrencies if most countries ban centralized exchanges?

We will definitely see some price fluctuations as people move their coins from cexs to dexs. Some might even take out their coins in fear. They might be scared of what this implies for crypto in their country and steers clear of anything related to it.

What steps are the crypto enthusiasts taking to preempt this?

We should encourage most crypto users to instead use decentralized exchanges in the first place. Bitcoin is decentralized and it must be treated as such.

[passwordnow]

Some countries already blame crypto for their economic woes.

I haven't seen this kind of news before that a country blames crypto for what's happening into their economy when they're not wholly adoptive with crypto.

We saw this with the harassment of some crypto executives and even jail terms for some. What will happen to Bitcoin and other cryptocurrencies if most countries ban centralized exchanges? What steps are the crypto enthusiasts taking to preempt this?

Then we'd go fully P2P. That's the way to go and there won't be any issues with that if most of the traders and investors of this community will just have to trade through P2P platforms. And I guess that the emergence of decentralized exchanges will come but we might see some adoption through those dexes having Bitcoin and I think they will be able to do that.

[Marvell1]

It will be a good thing because eliminating centralized exchange mean encouraging people to use DEX or P2P.

I will be very happy if most country choose to ban centralized exchanges, this would strengthen the decentralization and the market will be mature because they will learn how to self custody their coins. There have been many centralized exchanges getting hacked or bankrupt, the victim will say Bitcoin is scam if they hold the coins in CEX, unfortunately most people never learn about it.

But that will certainly never happen although it is the scenario that privacy and decentralization enthusiasts dream of. And what is happening is the opposite, the government even supports centralized platforms because through them they can control and manage investors like us. And with the recent attempt to attack mixers, I fear that in the future DEX will be their next target, don't be naive to think that they will support DEX and P2P development when neither of them will be beneficial for them.

Just because some governments have failed to control and operate their economies, they have no reason to blame and they are looking to blame centralized exchanges. That doesn't mean the rest of the countries are doing the same stupid thing. I guess the OP is talking about the Nigerian government with their recent accusations about centralized exchanges.

[dkbit98]

Some countries already blame crypto for their economic woes. We saw this with the harassment of some crypto executives and even jail terms for some. What will happen to Bitcoin and other cryptocurrencies if most countries ban centralized exchanges? What steps are the crypto enthusiasts taking to preempt this?

Nothing bad will happen, people will find a way to trade p2p on decentralized exchanges and that is much safer way than using centralized exchanges.
They can't ban all exchanges in every country because they already made them legal just like bitcoin, and they want to earn tax money coming from them.

[legendbtc]

Some countries already blame crypto for their economic woes.

I haven't seen this kind of news before that a country blames crypto for what's happening into their economy when they're not wholly adoptive with crypto.

I guess he's from Nigeria and was talking about their government blaming crypto and Binance for the devaluation of the naira. If this is what he means then as far as I know, only the Nigerian government is making these stupid accusations and no 2nd country is doing this.

https://www.binance.com/en/square/post/6637460411233

We saw this with the harassment of some crypto executives and even jail terms for some. What will happen to Bitcoin and other cryptocurrencies if most countries ban centralized exchanges? What steps are the crypto enthusiasts taking to preempt this?

Then we'd go fully P2P. That's the way to go and there won't be any issues with that if most of the traders and investors of this community will just have to trade through P2P platforms. And I guess that the emergence of decentralized exchanges will come but we might see some adoption through those dexes having Bitcoin and I think they will be able to do that.

One thing we forgot was that the satoshi that created bitcoin was a peer-to-peer currency, meaning it was not dependent on any centralized platform in the early days. Having centralized exchanges will help more people have the opportunity to access bitcoin more easily, but that is not the factor that helps bitcoin survive. So whether there is a centralized exchange or not is not an issue for bitcoin.

[passwordnow]

Some countries already blame crypto for their economic woes.

I haven't seen this kind of news before that a country blames crypto for what's happening into their economy when they're not wholly adoptive with crypto.

I guess he's from Nigeria and was talking about their government blaming crypto and Binance for the devaluation of the naira. If this is what he means then as far as I know, only the Nigerian government is making these stupid accusations and no 2nd country is doing this.

https://www.binance.com/en/square/post/6637460411233

I knew about Nigeria being too strict with Bitcoin and exchanges but not to that point that they're blaming crypto about their economic downturn. But thanks so, I understand now why they're putting the blame on Bitcoin with what's happening on their own fiat money.

Then we'd go fully P2P. That's the way to go and there won't be any issues with that if most of the traders and investors of this community will just have to trade through P2P platforms. And I guess that the emergence of decentralized exchanges will come but we might see some adoption through those dexes having Bitcoin and I think they will be able to do that.

One thing we forgot was that the satoshi that created bitcoin was a peer-to-peer currency, meaning it was not dependent on any centralized platform in the early days. Having centralized exchanges will help more people have the opportunity to access bitcoin more easily, but that is not the factor that helps bitcoin survive. So whether there is a centralized exchange or not is not an issue for bitcoin.

Yeah, almost forgot that but I think that OP and the others priority is to convert it into fiat and that's the concern IMO. But then, you're right that even without them, Bitcoin will remain Bitcoin and it can be continuously be used for transactions even without the usage or existence of these centralized exchanges. Like what's the historical purchase of Bitcoin pizza by laszlo, that's one perfect example but I guess that as year passes by, the narrative changes a lot.

[Suman1]

Bitcoin and alternative cryptos are nothing without the existence of centralized exchanges. Even though we're in the modern Dex era still we used to trade in the CeX and we rely mostly on them. As the way we can't define pen without paper similarly Trading without CeX will be stubborn. As of today, we have various exchanges albeit the Top 15 ones including Binance, Kucoin, Bybit, Gate, Bitget, Mexc, Kraken etc. are indispensable. If all the countries step up to ban centralized exchanges which is not possible, still they'll be just restricting us from being open to transactions, on the other hand, we move forward with P2P which can lead to many unlawful acts hence being friendly and legalised it will be a smart move instead banning. 

[shield132]

Some countries already blame crypto for their economic woes. We saw this with the harassment of some crypto executives and even jail terms for some. What will happen to Bitcoin and other cryptocurrencies if most countries ban centralized exchanges? What steps are the crypto enthusiasts taking to preempt this?

Which country blames crypto for their economic woes? Crypto can't destroy the economy of any country, if anything, it will only improve, El Salvador is a clear example of that. On the other hand, centralized exchanges are a different story. Countries complain that centralized exchanges aren't as regulated as other financial institutes, users don't have high security with them and many countries worry that centralized crypto exchanges might be laundering money too but this doesn't mean that centralized exchanges will be banned. I think that if any exchange is banned, it will be decentralized exchanges but at the moment they aren't as popular as CEXs, so they don't attract as much attention. Btw centralized exchanges will be more regulated and in close relationship with the government and national bank, they won't be banned.

[BlackHatCoiner]

It's extremely unlikely that all countries will ban all centralized exchanges, but if it were to ever happen, I believe it'd just make a lot of noise at first. People with genuine interest in cryptocurrencies wouldn't bait. There are decentralized exchanges like Bisq, which cannot be shutdown.

You cannot stop people from trading their currencies. The price would tank, though. Rest assured.

[Zaguru12]

Bitcoin and alternative cryptos are nothing without the existence of centralized exchanges. Even though we're in the modern Dex era still we used to trade in the CeX and we rely mostly on them. As the way we can't define pen without paper similarly Trading without CeX will be stubborn. As of today, we have various exchanges albeit the Top 15 ones including Binance, Kucoin, Bybit, Gate, Bitget, Mexc, Kraken etc. are indispensable. If all the countries step up to ban centralized exchanges which is not possible, still they'll be just restricting us from being open to transactions, on the other hand, we move forward with P2P which can lead to many unlawful acts hence being friendly and legalised it will be a smart move instead banning. 

Although I agree a bit with you regarding the fact that CEX has its role to play in the cryptocurrency trading ecosystem and them banning it will cause a short term FUD among investors or traders but I will say that Wouldn’t be the end of trading to other currencies. The thing is many people think the decentralized exchanges lack liquidity and sincerely there is no denial about that. But once we have the CEXs in trouble many people will move to DEXs which will definitely hair gives it more liquidity than in the past.

The only set of people that will get seriously affected is the futures traders, i don’t think any DEX will offer the much leverage that the CEX will offer, and as such will discourage many traders but as said the normal P2P or trade to fiat will not be an issue

[Darker45]

That would be a good thing in general. It might be a big problem at the start, but in the long run it would be beneficial. There'd be no more data leaks, questionable hacks, rug pulls, exit scams, bankruptcy, locked funds, ridiculous KYC, and so on and so forth. That would mean Bitcoin owners will be into self-custody rather than trusting third parties for their money.

Although this is far from happening, if this happens, developers would certainly come up with decentralized alternatives, platforms which can't be banned.