if using DEX for real world fiat(meaning bank deposits not stable coins) be warned.. if you or the other users of DEX you trade with may be doing ALOT of trades via their bank account but under the guise of personal payments. banks will see these people as operating a money service business and will request they formalise as a MSB and do the compliance or stop operating. they will ask for explanations for all the payments.
this has been the case with localbitcoins.com users years ago. and look what happened to most of those traders
this has been the case with localbitcoins.com users years ago. and look what happened to most of those traders
That's the disadvantage of using Fiat. It leaves a trail that quickly helps governments obtain your true identity. Avoiding banks altogether would be the way to go. Unfortunately, the world is still stuck with the Fiat standard. The vast majority of salaries are paid in Fiat, while most merchants and/or businesses accept only Fiat currencies as payment method. If this keeps up, we will never be able to live a truly-anonymous life with crypto.
Fortunately, not all hope is lost. As long as decentralization wins, it will be difficult (if not impossible) for governments to enforce regulatory action. This new "PATRIOT Act" by the US government is a blatant attempt to increase surveillance/control over centralized exchanges. It won't have any effect over DEXs, P2P trading platforms, nor non-custodial mixers. Who knows how crypto (especially Bitcoin) will fare in the future?
