I'm planning to build a CEX that does not track IPs, requires no KYC, no fiat support, and no email verification. The main goal is to create a privacy focused exchange. However, we've recently seen authorities shutting down privacy coins and exchanges under the pretext of money laundering and terrorist financing.
The truth is, only about 1% of users are involved in illegal activities. The remaining 99% prefer anonymity mainly because their funds often come from gambling services or marketing campaigns related to gambling, and they simply want to protect their privacy. Personally, I don't see anything wrong with that.
I would really appreciate your valuable suggestions on how to move forward with this idea.
It's impossible to build a CEX that offers high-level anonymity because you have to fulfil government regulations and international anti-money laundering regulations. You need to collect IP always but when there are doubts, you need to ask for a KYC documents, these are required by the government because if something happens, they need to track criminals. If you create a CEX, you are forced to follow the regulations to get a license or if you don't follow regulations, they won't give you a license and if you continue you run your business without a license, they'll shut it down, give you fines and there will be many other problems.