I think that these exchanges are going to risk losing a part of their clients if that's what it takes to be able to transact in the country.
What choice do they really have? Give up users or shut down. They can also fight the government in court but that could take time and be expensive. Only the biggest exchanges will try this.
Do you think the governments don't know it that people will run away from centralized exchanges if they start sharing information about every transaction with the IRS and other 3 letter agencies?
It's great news for them because less legit exchanges means less legitimacy for the crypto ecosystem and slower adoption. In other words less competition for CBDC.
What choice do they really have? Give up users or shut down. They can also fight the government in court but that could take time and be expensive. Only the biggest exchanges will try this.
Do you think the governments don't know it that people will run away from centralized exchanges if they start sharing information about every transaction with the IRS and other 3 letter agencies?
It's great news for them because less legit exchanges means less legitimacy for the crypto ecosystem and slower adoption. In other words less competition for CBDC.
Governments will do what's in their best interests. Mixers and truly-decentralized cryptocurrencies pose a threat to banks' very existence. You think governments will let this pass by? They will do everything in their power to try to reduce crypto's dominance in the mainstream economy. That's by either regulating it or making it "illegal".
I see no future for Bitcoin mixers, unless they stick to being "non-custodial" (which means decentralized). Tornado.Cash was a non-custodial mixer, but that didn't stop the US government from sanctioning it (although it was still possible to use it by interfacing with smart contracts directly). This will be a never-ending battle between crypto and governments + banks. With centralized exchanges getting ahold of the crypto market, we could say governments have some sort of control over crypto. They will have trouble regulating DEXs, though. Who knows what the future of crypto will be?
