Etherdelta founder just punished 388K USD by SEC because of licence problem.
300K for the licence, 13K for the judgement fees and 75K for the SEC.
Easy money for SEC lol
300K for the licence, 13K for the judgement fees and 75K for the SEC.
Easy money for SEC lol
https://www.financemagnates.com/cryptocurrency/regulation/sec-fines-etherdelta-founder-almost-400000/
Decentralized exchanges are still are subject to the law and may become more of a law enforcement target than centralized exchanges.
DEXs are now responsible for a higher percentage of money laundering of their total volume than centralized exchanges.
They are not really "decentralized" since the still has to be a team of people operating the exchange.
In the case of some DEXs they will still be vulnerable to hacks, 51% attacks and other coin network exploits.
It will be harder to hold the developers of decentralized exchanges liable since they may remain anonymous or live in a place other than where the prosecution occurs.
Waves Dex hacked. July 2018 https://cryptoslate.com/decentralized-exchange-waves-gets-hacked-after-6-million-debut/
Etherdelta hacked Dec 2017 https://mashable.com/2017/12/21/etherdelta-hacked/#LqdSbf4LJqqV
Bancor hacked July 2018 https://www.ccn.com/decentralized-crypto-exchange-bancor-hacked-12m-in-ether-stolen/
Idex introduces full KYC - https://news.bitcoin.com/decentralized-exchange-idex-to-introduce-full-kyc/
Quote
Explaining its transition to a full KYC model, IDEX wrote: Decentralization exists on a spectrum, and unless your system or application lacks any centralized parts it can be subject to regulation. Aurora is working to create a fully-decentralized financial system, but the path to getting there requires significantly more control and centralization than the end state. In addition to IP blocking, IDEX will be implementing KYC/AML policies in order to comply with sanctions and money laundering laws.