Quote from: Blitzboy on September 13, 2023, 02:55:28 PM

Quote from: Maslate on September 13, 2023, 01:59:03 PM

Quote from: Smack That Ace on September 13, 2023, 01:16:53 PM

I think KYC helps exchanges to control and track their users to avoid cases of scam or money laundering...The exchange collapse issue has nothing to do with KYC. The collapse of exchanges has legal implications and the government must be held responsible. But another thing is that we don't want to be controlled by the government, we want to be free, but when we are scammed, we ask the government to solve it. This is one of the loopholes in the crypot market and scammers are fully exploiting it.

The only way users can scam an exchange is if they can hack it, aside from that I don't see any possibility. KYC is just a simple verification process where an exchange would like to know their users and it's mandatory to all legal exchange as they are regulated by a certain agency of the government, so there's no need to question that because exchanges nowadays are like banks.

If we are expecting full anonymity, then there's always this decentralized exchange, but the problem is they don't have the volume like CEX, and that only tells us that more people trust centralized exchange over decentralized exchange which we can conclude that most of them do comply with the KYC.

KYC is essential to this progress. It reassures markets and regulators that fraud will decrease. KYC may deter bad behaviour, but no system is immune to hacking.

DEX may not have as much traffic as centralised exchanges, but they offer something special. You can encounter people who prioritise independence and decentralisation over speed and money there. CEX have the most users, however DEXs are gaining popularity. As more individuals learn about blockchain technologies, DEXs may gain users.

If evaluated fairly, DEX is not a new technology on the market, it has appeared and existed for quite a long time but because of some limitations, it still cannot compete with CEX. CEX really brings more utilities and services that we need and almost people cannot give up CEX even though they know that there are many risks when using it.

DEX has its advantages and especially emphasizes privacy, but it cannot be denied that the liquidity of DEX is really too small compared to CEX. Frankly, I also do not believe that the game will become fairer, CEX will still prevail whether we believe it or not.