Re: What's your opinion on the future of Decentralised exchanges
There is no future for decentralized exchanges. In a few years, most of the cryptocurrency market will be regulated by the SEC and similar regulators. Recently, in a closed group, there was a conversation with a representative of a major exchange from the top 20.
Regulators send them recommendations, but do not force them to comply with these requirements. The requirements of the SEC apply to most countries, and if a crypto exchange refuses to comply with these requirements, then it will be banned in many countries. The same applies to large decentralized exchanges. They will all cooperate with regulators.Of course, there will be ways of decentralized exchange in new projects, but they will be greatly inferior in terms of liquidity and opportunities.
Regulators send them recommendations, but do not force them to comply with these requirements. The requirements of the SEC apply to most countries, and if a crypto exchange refuses to comply with these requirements, then it will be banned in many countries. The same applies to large decentralized exchanges. They will all cooperate with regulators.Of course, there will be ways of decentralized exchange in new projects, but they will be greatly inferior in terms of liquidity and opportunities.
I'm afraid you're right, mate. With increasing regulatory pressure from mainstream governments, developers of DEXs would have no choice but to make KYC mandatory to prevent their project from being shut down for good. Once that happens, there would be virtually no difference between a decentralized and a centralized exchange. What makes a DEX unique is the ability to trade cryptocurrencies without revealing any personally-identifiable information. When you add KYC to a DEX, you'd be introducing a single point of failure (which is something crypto/Blockchain tech was meant to avoid in the first place).
Crypto is heading towards a dark future after the Terra/LUNA and FTX collapse, so we should expect further centralization down the road. Just my opinion.
