Topic: Centralized Exchanges and Government should be avoided (Read 173 times)

On the contrary, they can be predicted to be working with various government agencies as situations demand. They are licensed and registered companies and, as such, they have legal obligations. These obligations include the submission of personal information to the authorities upon request.

However, we also have to admit that crypto adoption, to a certain extent, means the proliferation of centralized exchanges and other crypto-related businesses. In a way, a successful collaboration between the government and crypto will mean that somebody or a legal entity will have to come out and deal with the government.

Expecting people to not use centralized exchanges is a pipe dream. Centralized exchanges provide the best user experience, and most people don't even care about privacy/security.

You can't say he is wrong, everyone has the right to choose to have privacy or not, although most people do not care about KYC, but some people still care about it and trying all their best for their coins not to be linked to their real identity. Some people even have the privacy part and another for KYC, and making both not to link.

If there is no decentralization, how can privacy be maintained? Bitcoin remain decentralized, but the government are looking for more ways to make it centralized with the help of centralized exchanges, but bitcoin itself is decentralized. Exchange like Bisq is also decentralized.

You can also still convert bitcoin to monero and back to bitcoin on a decentralized exchange.

You're wrong, actually when the government regulated Bitcoin, it will help adoption and encourage their citizen to use Bitcoin since they're already know government is allow them to use Bitcoin.

Am not really sure what you mean to remain decentralized, because there's no such thing but many people want to protect their privacy. Using decentralized exchanges will avoid centralized exchanges to collect our KYC, but if you not using mixer, chainalysis can still track your coins and address. So you need to use both decentralized exchanges that run with Tor and mixer e.g. Chipmixer.

Why do you think there is government? There should be an authority. I agree that crypto is best on decentralized space. However, can we stay that way forever? Sooner or later we like it or not, there are a time that they will really intervene to propell every major mistakes or wrong doing on decentralized. Its not decentralized is not good but take a look as well on those scammers who uses its feature for their crimes which easily escaping free and earned a lot of money from the people.

I love the second part of the statement. I am ideologically in favor of small government, little political intervention in the lives of citizens, and I would like to know how I can "avoid" government without being thrown in jail. I understand the general idea, but with governments wanting to control everything more and more, I think it is difficult.

And not everything is bad about centralized exchanges, as some colleagues have commented. Coinbase, for example, has contributed a lot to the price of Bitcoin getting to where it has.

Your opinion is not unpopular sir. I am with you on this and as I always say, the fight is not against exchanges. Infact the existence of exchanges is a reassurance that bitcoin and cryptocurrencies are existing and have bright future.
Anyway exchanges cease to exist, that will be an indication of bitcoin failure. The fight is against the enemies of bitcoin and exchanges aren't one. Not everyone want privacy and nothing under the sun is safe.
I appreciate the reputable exchanges because they are the banks of cryptocurrencies. I so much believe that their existence is not a threat to bitcoin existence.

Maybe my opinion will be a bit unpopular, but I don't understand such negative attitude towards centralized exchanges. Yes, I'm all in for decentralized exchanges, but people choose to use centralized exchanges for various reasons. Leave this option for them. Centralzed exchanges always will have their place in the market (probably not small), mainly because of regulations, especially when it comes to dealing with fiat.

No doubt that centralized exchanges do more worse to their users than good because they mostly work actively with the government but we need to understand that there's no way we can exclude CEX out of the crypto industry but every individual have right to choose either to go for DEX or CEX when privacy come to play.

Having said that, you may think the exchange in the subject is taking advantage of countries but trust they have no right whatsoever to operate on a country soil without the government rules and regulations. Therefore, they are operate base on the contract they had with the government and an example is the Coinbase recent regulation that was announced some days for Netherland users.

As disappointing as this may sound , I must tell you that at this current stage and level we are in cryptocurrency, it is unfortunate that we can not do without centralized exchanges, they might have their faults like asking KYC and selling users data for their personal profit, they can be prone to attacks and they are the major targets of hackers, they are not perfect but if truth must be told, I must say we still need them.
Day Traders, mostly futures/margin, swing traders need centralized exchanges for business.
Speaking of adoption, centralized exchanges like Binance, have brought a lot of adoption to crypto, I know several people who got into crypto through Binance  when they sponsored Afcon 2021 and BBN season 6, this is in Nigeria alone, we don't know they are doing in other countries so as to create more crypto awareness, it is true that what they do, they do it mostly for their own profit, but you can agree with me that they spent huge amount of money sponsoring those events, they need to make that money back .

So in conclusion, I would say that, and you must agree with me that centralized exchanges are doing far more than decentralized exchanges when it comes to bringing crypto awareness to the world and aiding mass adoption of this technology.

Governments cannot be avoided completely, they put themselves in control of everything including our money and finance, bitcoin is one way to avoid government control in our finances, but centralized exchanges are just like traps set to bring us back under the government control that we want to avoid. It is amusing that people want to use bitcoin to evade censorship, but end up being censored when they use centralized exchanges. Centralized exchanges should be avoided, and many reasons why can be discovered in this thread by BlackHatCoiner: https://bitcointalksearch.org/topic/newbies-dont-use-centralized-exchanges-5393961

It is true that the exchanges are centralized, they work with the government and become friends with the government in order to promote their services in the countries they are allowed. What is most worrying is the fact that the exchanges can mishandled customer's data, sell it to third party, the reason we should avoid KYC. But traders (scalping, day trading and swing traders) still find other ways difficult than to use centralized exchanges, more no-KYC exchanges are becoming KYC exchanges and the no-kyc ones are not even decentralized.

El Salvador are using Chivo wallet, Chivo wallet is a centralized wallet that makes transaction faster as no on-chain transaction involved, although you can still make use of noncustododial wallet and decentralized exchanges in El Salvador.

Dubai, Bermuda and Kazakhstan are some of the countries Binance exchange had help with the implementation to how they can regulate cryptocurrency, and now this same exchange is on it again in Cambodia on the same note, i know quite alright that centralized exchange isn't the best option for use because they can't be predicted from not having a link with the government in securing users privacy and data linkage, revealing user's identity and tracking them, not to talk of how prone are the centralized exchanges to hack attacks.

I noticed that some countries that are giving little indication on bitcoin adoption have developed interested with some of these centralized exchanges as influencers they sign MoU in providing crypto services for them as in the case of Cambodia.


I do not see the need for the use of centralized exchanges as a cryptopreneur, also considering their collaboration with the government, centralized exchanges are taking advantage of countries having in consideration the implementation of cryptocurrency regulations for their own interest/business growth and not for cryptocurrency adoption and growth, users should learn to remain decentralized and take El-Savador as a good example instead and not centralized exchanges that are after their own interest.