What if Most Centralized Exchanges are Banned?

[legendbtc]

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.

But honestly, I don't think the government will ban all centralized exchanges because they are relying on them to control and spy on us. As I said, it is only the Nigerian government, there is no second country that legalizes cryptocurrencies but wants to ban centralized exchanges. Many governments are starting to issue cryptocurrency regulations, and they require exchanges that want to continue operating in their countries to comply with the regulations and cooperate with them. In the future, many governments will even offer their own cryptocurrency exchanges through banks if the demand for it becomes more widespread and it will be easier for them to tax us. And I believe that the Nigerian government will soon reach an agreement with binance or other exchanges because they will not want to lose the huge tax revenue from there.

[Z-tight]

What will happen to Bitcoin and other cryptocurrencies if most countries ban centralized exchanges? What steps are the crypto enthusiasts taking to preempt this?

The government are not really against centralized exchanges, they can get any information they want from them and they can use them to confiscate people's money, they'll only have issues with them if they are non-compliant, especially with kyc requirements. It is not possible for most countries to ban centralized exchanges, what they are against is privacy solutions, they enjoy centralization. However, if we agree that this can happen, then if you've not been trading p2p, you'll have to start doing it.

[Dr.Bitcoin_Strange]

Well, Bitcoin has had a lot of traction since its existence, and it has become so popular that it cannot be stopped by any factor except a global pandemic, and perhaps all the centralized exchanges cannot be banned to affect Bitcoin. There are a lot of centralized exchanges in the crypto world, and they can be used in the majority of countries where Bitcoin is not banned. There are also some decentralized exchanges for Bitcoin, and you can also trade Bitcoin via direct human-to-human p2p trading.

[Wapfika]

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?

The only way to regulate cryptocurrency is through centralized exchange. It’s very dumb for the government to completely banned it since Bitcoin is decentralized and can’t be regulated on its own.

There’s also P2P and DEX exchange which can offer trading without relying through the centralized exchange. Bitcoin will continue to be traded as long as there’s a demand since it’s main use is for Peer to Peer transaction and not through 3rd party like Exchange. We are just no choice on using CEX since it offers instant liquidity to trade our asset immediately.

[royalfestus]

I believe that blaming centralized exchanges for attacks is often driven by a desire to share in their profits. Although it's uncomfortable to admit, all exchanges, to some extent, are involved in dubious money laundering activities. They make substantial profits from laundering and market manipulation, and as long as they pay their dues to regulators, they'll continue to operate without major issues. Decentralized exchanges have their own advantages, but they can't dominate the market because it's too large for them to handle alone.

[BlackHatCoiner]

Well, Bitcoin has had a lot of traction since its existence, and it has become so popular that it cannot be stopped by any factor except a global pandemic

We've already had a global pandemic. Bitcoin, not only continued working, but became stronger than ever, against all odds. And that's because in times like these, when faith in the government starts to decline, it makes sense to become interested in Bitcoin.

Bitcoin will continue to be traded as long as there’s a demand since it’s main use is for Peer to Peer transaction and not through 3rd party like Exchange.

The only way to regulate cryptocurrency is through centralized exchange.

So, the only way to regulate cryptocurrency is by banning the entities which are not supposed to exist in the first place. Such sense, wow! 

[examplens]

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?

Most of the countries that blame crypto for anything in their economy have a very poor economy. They certainly do not have significant influence on a global level, so shutting down crypto is a decision that will only harm them.

What steps are the crypto enthusiasts taking to preempt this?

They have to change the government that governs their country and choose one that is more modern and more open-minded

[albon]

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?

It is really strange to blame cryptocurrencies and make them the primary cause of this country’s economic problems. Crypto contributes to financial inclusion, provides increased access, decentralization, and privacy, improves the efficiency and costs of transactions, and is an alternative solution to traditional financial systems. The economic problems that this country suffers from are the result of other causes, and cryptocurrencies have nothing to do with them. Many countries have legalized crypto, and their economies have only been positively affected.

I do not think countries can ban CEX because it is already compatible with the regulatory and legal regulations in these countries, operates its services legally, and does not conflict with AML or KYC policies. And if these platforms are licensed in the country, I don't think they can be banned. Even if we assume that this happens, Bitcoin and some altcoins appeared before the launch of these centralized platforms. Then, through P2P and decentralized platforms, things will be finer and better than CEX, which conflicts with the decentralization of cryptocurrencies.

[EarnOnVictor]

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?

I suppose you are referring to Nigeria, that's the only country I know that has all the pictures you painted above. Well, the Nigerian government acted immaturely and they've always been in the business of blaming everything possible for their woes, they like to shift the blame instead of finding the right and lasting solution.

With their illegal detention of the Binance executive, they've now dropped the charges against them due to the intervention of the US government because the detention is baseless and can only happen in Nigeria. For these, I don't see it as any basis to fear the clamp down on crypto exchanges.

As for the question, it is no threat if countries of the world ban CEX, people will of course turn to DEX. Also, there will be other means to transact in Bitcoin like in Telegram and on other social media. But one needs to be very careful in these extra arrangements.

[Slow death]

some African countries where the dictatorship is being even more radical and which has been against bitcoin and exchanges. but fortunately in my country, despite being an African country, the government has encouraged people to buy cryptocurrencies on international exchanges, in my country cryptocurrencies are very welcome. With the advancement that cryptocurrencies are having in terms of use in the world, it is now unthinkable and impossible for governments, all of them, to ban cryptocurrencies, which can and is happening and that governments are demanding exchanges to charge kyc

nowadays, even to use an exchange listed on the best exchange, the person needs to go through a very complicated kyc: ID, proof of address, photo holding ID, face ID, and so many things that the person needs to do at the time of kyc that is tiring. but this clearly shows that exchanges are complying with government recommendations and that therefore exchanges will not be banned, they will operate for many long years, even in these few countries that have banned exchanges and bitcoin, they will eventually have to change their stance . because cryptocurrencies will not disappear, on the contrary, every year more cryptocurrencies are increasing