Quote from: Minor Miner on October 01, 2024, 10:53:07 AM

Having more regulations and management from the government will help us minimize the risks when using CEX, but we should not be complacent that the government will always be on our side if an accident happens. Like banks, many customers are not protected by the government when banks lose their customers' money.

When the government intervenes, they probably won't run away with our money but it's horrible when they hold our assets for 10 years like MT.gox did. Mt.gox has compensated the victims after more than 10 years but I wonder how many people can wait and receive that money, and how they have lived for the past 10 years. So the best way is never to give our assets to any third party, it is best that we protect our assets ourselves.

Do you mean governments will bail out exchanges just like they've bailed out banks in the past? I doubt it. But with crypto entering its way into politics (especially in the US), things could change in the future. It's unfortunate to see how creditors are paid back only a portion of what they've had in the first place. Not like banks which have greater insurance coverage. Bank deposits in the US are insured by the FDIC up to $250k.

If crypto exchanges had a similar coverage, things would've been better. It'll be up to "crypto lobbyists" to do their thing for the good of the industry. Regulations are constantly changing, so fingers crossed investors will have better protections in the long run.