Topic: CEX P2P under Governments Attack, let's Embrace DEX P2P (Read 201 times)

Two of the Binance staff were arrested in Nigeria for manipulating the fiat currency below dollar. Binance vendors were inflation the dollar very high against the dollar in their exchange. And causing inflation in stock exchange so the government called two of the Binance staff to go and explained but they couldn't give good explanation so the two were arrested and one escaped. So Binance p2p in the country has been stopped and this extended to other centralized exchanges and most of the centralized exchanges have delisted the p2p in the country as the government directed them to do so.

And today being the 6th day of June, 16 US lawyers appeal to President Biden to intervene for the arrest of the US citizen Tigran Gambaryan by Nigerian government for the manipulation of the local currency in their website (exchange). And the 16 US lawmakers said, Nigerian government hold their citizen hostage. And I think that should be a legal battle.


So presently we only have few CeX (two), bitget and ByBit which are the most popular ones for now. And according to rumor those two will also be stopped. So we have the option for the real p2p which should be one on one or I know the person.

I had some idea about it and I believe that's why I said that. When a country's government attack p2p centralized exchanges then that country's government tries their best to attack the decentralized p2p exchanges as well. I know that such attack isn't going to be a direct attack because it would be much tough for them to directly attack decentralized exchange p2p users as they can't do that directly.

The users who complete p2p transactions on decentralized exchanges also have to use banks in order to complete the fiat based p2p transactions and in such case banks could monitor the bank accounts or digital banking accounts of those p2p merchants and if they see suspicious transactions then they may freeze the accounts of the merchants who do p2p transactions on decentralized exchanges.

It would be much hard for the government's to track p2p crypto transactions but p2p crypto to fiat and fiat to crypto transactions can be tracked to some extent. Even sometimes in order to do that, government's can have their accounts set as merchants and whoever does p2p trading with them they track their accounts and take actions against those in stealth mode first and then some kind of direct actions.

Some, just like you said... Yunno what? The reality is far from what it looks like to you; most countries have taken the censorships really personal as they're basically out to extract documentations of people's private information, through KYCs.. Imagine being asked to release every user's data that has a link with their local bank? Crazy right?

You clearly have no idea about what you just said. Decentralization has never, and will never be leaked or broken. How do you charge a case on anonymous exchanges?

Centralized P2P exchanges are nowhere near their Target range for sure because they all KYCed so this will be their last point of concern logically speaking. We expects the privacy which is a choice on our own and for that using Bisq or whatever decentralised P2P exchanges available but we need to understand government is not really trying to ban because they realised it's not possible so they are trying to centralized it as much as possible and take control of it.

Why do you consider Robosats as not decentralized exchange? Since January 2024, it works in a DEX mode.

The DEX is available at two addresses:
http://dex.robosats.com/ - with limited functionality,
http://robodexarjwtfryec556cjdz3dfa7u47saek6lkftnkgshvgg2kcumqd.onion/ - with full functionality.

Each user can take on three roles:
1. Maker - the one who publishes an order (exchange request),
2. Taker - the one who accepts an order,
3. Coordinator - the one through whose Lightning Network node the exchange is conducted.

All you need to become a maker or taker is a few sats in your Lightning Network wallet. Yes, even the recipient of sats must have some to pay the insurance bond for publishing or accepting an order. The bond is needed to avoid fake orders and fake responses. It is returned after the successful completion of the trade or after the cancellation of an order that no one responded to. However, if you back out of a trade that has already started (when the order has both a maker and a taker), the bond is not returned. Part of it goes to the other party, and the other part goes to the coordinator.

To become a coordinator, you need to have your own full Lightning Network node. Insurance deposits and the exchanged sats are sent to this node. The coordinator cannot seize these funds (the invoices they receive only allow them to manage the sats according to the specified scenarios). However, the coordinator can act as an arbitrator in a dispute: if the two parties involved in the trade cannot agree on whether all obligations have been met and the sats should be transferred to the recipient, the final decision will be made by the coordinator.

Coordinators can set a fee for their mediation. This fee is paid from the exchanged amount (a portion of it remains on the coordinator's node). Different coordinators may charge different fees.

Exchanging on the DEX requires trust in the coordinator. A coordinator who colludes with one party can leave the other party without Bitcoins and without fiat currency.

The coordinator for a transaction is chosen by the maker. If a potential taker does not trust the coordinator specified in the order, they should find an order with a different coordinator or publish their own order.

Decentralization lies in the fact that the RoboSats team retains only the functions of supporting and developing the protocol. Its source code is open, and anyone can launch their own platform on any server. The protocol provides for information exchange between coordinators. As a result, each coordinator has information about the status of all orders in the system. A new server only needs to connect to any coordinator, after which it can receive information about all available orders and coordinators, create new orders, and respond to them.

If desired, the system can also be used to exchange bitcoins for other cryptocurrencies.

So now the new target of the government is centralized p2p exchanges where users can easily convert their crypto to fiat and fiat to crypto.

They are somehow trying to make such conversions harder and I believe they are doing it so crypto users may not be able to convert their crypto to fiat and fiat to crypto.

If decentralized p2p exchanges are working then that's a good sign, but still a question arises that for how long those decentralized exchanges will be safe from the government?

I think if in a country centralized p2p exchanges are under attack then in that country decentralized p2p exchanges are also at very high risk.

You're right and I got your idea from here, we have only few decentralized exchanges, among the few, some of them do not offer for the service of p2p trading for local currencies isn't allowed in them, this is really going to be a major concern later in future because if paraventure everyone tends to do away with the centralized exchanges due to governments regulations, what other platforms are we going to have for the use of P2P trading in exchanging our crypto to fiat or fiat to buy crypto, it's better we begin to have as many as possible decentralized exchanges like bisq, which could serve on diverse purpose to the standard and taste of many traders and CEX users.

Agreed, centralized exchange's put their business interests first and its understandable...but can a Dex compete with a CeX in terms of interoperability & efficiency, I don't think so.

I know we are trying to avoid the bureaucracy and government control of these exchanges, but but can the DeXs we have handle the traffic that CeX p2p handle, and because so much resources go into maintaining and running of such a platform...do we have Devs ready to invest the resources to come up with such a platform that's not restricted to a few blockchains and guarantee safety of our crypto assets...I don't think so tbh. But with more exchanges being clamped down, I think we don't have a choice but to respond by going back to where it all started from...

Very few countries are experiencing ban or restrictions on p2p transactions on exchanges but however I don't see why we should be concerned when government are clamping down on exchanges since we are seeking for adoption of cryptocurrencies and I believe the reasons why we need centralized exchanges is just to convert cryptos to fiat which is not a very good practice but however the reasons why we just acknowledge exchanges is due to the fact that crypto adoption hasn't gotten to a level where we can comfortably offer to use cryptos on real life transactions because only few organizations and individuals does their businesses using cryptocurrency.

However, I just see those countries clamping down on centralized exchanges as those who ain't in support of cryptocurrency, reason being that they either see it as what will degrade the use of fiat that has been a major currency over the years and since cryptocurrency are decentralized and in opposition with CBDC makes it difficult for some government to accept since they always want to be in control of every monetary affairs of country and to also impose regulatory policies and taxes.

In as much as this crack down on centralized P2P exchange by government is gradually effecting crypto enthusiasts to carry out their transactions in these affected countries, well, In the order hands ,I kind of think Decentralised exchange will take advantage of this very situation and we might see a rise of more Decentralised P2P exchange in the near future, sometimes we fail to look at positive impact of certain situations on ground.

Op, I don't think regulation of these centralised exchanges is a bad one, besides their activities still needs to be put on check because of how they will treat their clients. However, the way that Nigerian government is going about this stuff isn't gonna be the lasting solution to the problem and in order to strengthen their currency, they should come in agreement with these exchanges and find a way of taxing its citizens involved in crypto, this way they will generate huge amount of revenue than shutting down the centralized P2P exchange.

There are not many real decentralized exchanges available today, Bisq is one of them but fees can be higher and it can be slower for people who are using it for the first time.
Recently there was for of Bisq called Haveno dex that is based on monero for more privacy and lower fees, but it is still in early stages.
Few more decentralized exchanges I know are Basicswapdex.com and Blockdx.net but they don't offer fiat/cash trading.
For P2P exchanges there are more options, but they are not decentralized, for example PeachBitcoin app, Robosats, lnp2pbot, NoOnes, etc.

The government is only fine a way of stressing the people's if not waiting concerned him with the p2p again, or may he don't want to see the centralized exist, which is why he is looking for a way to ban all the centralized. When the federal government was talking about Binance, people were taking it as a guarantee and making it possible, and he's now trying to come back to OKX, and Kucoin government doesn't know that is our naira currency is trying to strengthen.

But it won't know the advantage of all this now until the future if not going to banned them. What can make a country to develop since the government's aims have been achieved? Let us wait for his next target.

I know centralized exchanges start with their 'centralized' exchange platforms first, then they create their Peer to Peer platforms for users, then Web3 wallets.

It is hard to believe that they give us truly P2P platform to use, and most of them require KYC to use P2P services too.

With their Web3 wallets, it's hard to believe that your privacy will be protected because their Web3 wallets are closed source, not open source.

Help: A list of LocalBitcoin alternatives (P2P marketplaces).
LeGaulois did not update it since 2021 and some P2P marketplaces closed their services already like https://localcryptos.com/ and https://localbitcoins.com/

As for Nigerian government yes!
They have look for ways to restrict Nigerians to trade p2p in centralized exchanges like Binance, OKX, and KuCoin exchanges; they are doing all these just to strengthen our Naira currency which I think is not the best solution for them because even the official rate is not regulated not to talk of the official market.

If Decentralized exchanges will have enough liquidity, then it will be better since the government will not have easy access to regulate the affairs of p2p because centralization is what is given them the power to interrogate these exchanges to block Nigerians from accessing p2p within Nigerians.

The fight against mixers is only predominant in US, the government in some countries from the examples made have already been fighting against exchanges to stop the p2p service of their local currency with other foreign currencies like the USD and the likes, also, some exchanges were banned already and inaccessible in some countries still within the examples of the countries involved as mentioned, while all these were indirect aggression on their fight against bitcoin and economy instability, coupled with their mentality that crypto is used for fraudulent activities.


That is true, thank you for the observation, i will take note on that, which means, hodl hodl can only be regarded as a No KYC centralized exchange and not a decentralized exchange or since we cannot be sure on them requesting for KYC later in future, i think it's better they just fall under a centralized exchange, whether they request for KYC or not.

True Non-kyc exchanges don't necessarily needs to be DEX, at that time Kucoin required KYC for p2p around 1Btc and above, if I remember correctly.

Actually they're blinded because of their greed from the fact that they're hoping to able to fine these exchanges especially binance which they actually attempted to fine $10billion https://www.bbc.com/news/world-africa-68762553

The decentralized exchanges did not become centralized exchanges, they are centralized before. If they call themselves decentralized exchanges, make research yourself to know if it is true or not true. Just like I have said before, the site is KYCnotme, it is about exchanges that needs no KYC to access. If Kucoin did not make their customers to get verified, the exchange will still be there but with average rating.

  A country that has failed to meet up to standard of the other countries you also listed here still puts a ban on p2p. The government here knows what p2p entails, but their negative action towards it is simply because they lack ideas on how to generate revenue or should I say task from it.

Since the coming of this administration, task generation has been an important agenda which they've failed to applied in the area of crypto, but choose to shut it down. What makes this interesting is that many Bitcoin ethusiasts from this country are far smarter than the government, thereby developing other means(but not easy) to do their trade.


Exactly my point. The government understand how beneficial p2p is to the citizens, but their attempt to generate revenue from it has failed couple of times  . No offence, but I think the country is currently in a state of m*ss, as their highest bill (N1000) can't even compete with the US lowest ($1).

Let's not be too political, DEX should be the people's choice.

Exactly, the other country government have actually thought of a way out of getting crypto traders under control and most of this countries government had to settle for centralized exchanges must make sure their customers under go compulsory KYC verification and then if they regulate them they will be able to get a little information of the country trades and also tax them example is India. When Nigeria government invited had did had talks with binance Africa officials I thought this was going to be their way out too, but they went the other way


That post was done when some other centralized exchanges were still there and after the update some like KuCoin were filtered out. Maybe it is now taking a long time again that they updated it and most of the DEX then have moved to become CEX.

I guess you people that have banning of P2P exchanges that are centralized in mind are from Nigeria. What most countries want is KYC. If you abide to the laws and policies of the country and tell your customers to do KYC, you will have no problem with the government if cryptocurrencies are legal in your country. But Nigeria is different as the government do not understand how to manage the economy. Nigeria is one of the worst country that do not understand the impact of P2P and how it can help them to generate income.

This link you provided is old because I can see the site has been updated. There are still centralized exchanges on the site but no requiring KYC. The site is about no KYC exchanges and not decentralized exchanges. Decentralized exchanges require no KYC which is the reason you also see them among.