DEX promotes Peer-to-peer trading, enabling users to directly transfer funds from one person to another with no third-party involvement. Yet, it has drawbacks, like users are supposed to deposit crypto into their crypto wallet to make transactions. Also, it requires KYC verification and crypto wallet integration.
I didn't know that some DEX's have KYC verification? Are you sure about that or I just wasn't aware of it? 
A truly decentralized exchange should not have any power over user's funds nor should it care who trades on it... I won der if there will be some regulation coming for DEXs in the future as this goes against governments plans to trace the money