Game Changer for DEX as SEC charged Etherdelta founder

HighlanderToken

copper member

Activity: 40

Merit: 0

Quote from: flying_bit on November 09, 2018, 12:42:58 AM

Even the DEX sites will start doing it now. That'll drive traders back to centralized exchanges. It's definitely bad news for bottom-of-the-barrel shit tokens because liquidity will probably get worse. Most ERC-20 token liquidity is already on regular exchanges anyway, so it's not the end of the world.

Exchanges that have the name "DEX" in their names (IDEX) but are part centralized are not DEX's and shouldn't change their names. I only know of one dex now that is truely decentralized and that is Saturn Network. They don't ask for no KYC and never will, right now they are open to accept free listing for ETC Chain tokens but really soon they will open up free ETC listing and trading also.

eminemcookie

full member

Activity: 364

Merit: 123

Quote from: 1Referee on November 13, 2018, 05:02:10 PM

Quote from: eminemcookie on November 13, 2018, 03:29:13 PM

The SEC will not be able to go after every DEX, too many will be completely out of their control. They cannot charge someone who is on the other side of the world. DEX's can also become more and more decentralized until there are no central entities in charge of running the exchange or no one knows who these people are.

It depends.

Going after those behind these DEX's is only the first step. Step two might very well be that authorities go after Vitalik & Co (obviously assuming they run on top of Ethereum). It doesn't really help that Vitalik admitted this year that he would write a hardfork if he was forced to do so.

I strongly believe that we haven't even remotely seen the true nature of authorities when it comes to enforcing their age old laws, which is exactly why I am glad that none of this garbage is running on top of Bitcoin. The less you start messing around with authorities, the less you have to worry about.

The only viable DEX is that with second layers we all have the ability to be an exchange ourselves, and that with just our wallet clients. We'll be there eventually.

Do you think the authorities would have the grounds to do that? I assume on the basis that he is responsible for facilitating the illegal exchanges?

That DEX which you speak of is what I was trying to allude to, that way authorities would have to go after millions of individuals and that's far less likely to happen.

1Referee

legendary

Activity: 2170

Merit: 1427

Quote from: eminemcookie on November 13, 2018, 03:29:13 PM

The SEC will not be able to go after every DEX, too many will be completely out of their control. They cannot charge someone who is on the other side of the world. DEX's can also become more and more decentralized until there are no central entities in charge of running the exchange or no one knows who these people are.

It depends.

Going after those behind these DEX's is only the first step. Step two might very well be that authorities go after Vitalik & Co (obviously assuming they run on top of Ethereum). It doesn't really help that Vitalik admitted this year that he would write a hardfork if he was forced to do so.

I strongly believe that we haven't even remotely seen the true nature of authorities when it comes to enforcing their age old laws, which is exactly why I am glad that none of this garbage is running on top of Bitcoin. The less you start messing around with authorities, the less you have to worry about.

The only viable DEX is that with second layers we all have the ability to be an exchange ourselves, and that with just our wallet clients. We'll be there eventually.

eminemcookie

full member

Activity: 364

Merit: 123

The SEC will not be able to go after every DEX, too many will be completely out of their control. They cannot charge someone who is on the other side of the world. DEX's can also become more and more decentralized until there are no central entities in charge of running the exchange or no one knows who these people are.

Brawnsugar

jr. member

Activity: 126

Merit: 5

I'm sure they saw this coming and waited for it. All they needed to do was comply with the SEC and get registered, which of course isn't any easy thing to do, but necessary considering the fact that their business could get threatened with a cease and desist order. Now they'll be forced to get registered and implement KYC requirements which a lot of people were running from in CEXes

forked human

newbie

Activity: 41

Merit: 0

Quote from: flying_bit on November 09, 2018, 12:42:58 AM

SEC charged Eherdelta founder with Operating Unregistered Exchange.

To quote from news :
“EtherDelta had both the user interface and underlying functionality of an online national securities exchange and was required to register with the SEC or qualify for an exemption,” said Stephanie Avakian, co-director of the SEC’s Enforcement Division.

What do you think will happen to all DEX? Will this affect the value of all erc-20 as liquidity will now much harder as most DEX is the to go market of many ICO token that's not yet approve by centralized exchange.

This is surely gonna be a game changer not just for DEX but all trading platform

Honestly it is neither a big fine considering its only 388 thousand dollars but also it was definetly called for. EtherData knew the risks of not registering as a securities exchange and they had time since JUNE 2017, that is over a year of time to register but declined doing it.

If a government tells you to do something and you refuse it what would you expect, government to just say "sorry to bother you" and move along? Of course it was bound to happen one day and I think they should have fined him a lot sooner. This is not a surprise or any negative approach to crypto to kill the momentum or anything, it is just a government telling someone to list as securities exchange and that person declining it. I would have been shocked if nothing happened to them.

exstasie

legendary

Activity: 1806

Merit: 1521

It's sad to see this happen to one of the oldest decentralized exchanges. I guess it wasn't "decentralized" enough with a clearnet website, non-anonymous owners, local server infrastructure, and so on.

Quote from: flying_bit on November 09, 2018, 12:42:58 AM

What do you think will happen to all DEX? Will this affect the value of all erc-20 as liquidity will now much harder as most DEX is the to go market of many ICO token that's not yet approve by centralized exchange.

It really sucks for traders trying to duck KYC. Even the DEX sites will start doing it now. That'll drive traders back to centralized exchanges. It's definitely bad news for bottom-of-the-barrel shit tokens because liquidity will probably get worse. Most ERC-20 token liquidity is already on regular exchanges anyway, so it's not the end of the world.

flying_bit

jr. member

Activity: 434

Merit: 9

SEC charged Eherdelta founder with Operating Unregistered Exchange.

To quote from news :
“EtherDelta had both the user interface and underlying functionality of an online national securities exchange and was required to register with the SEC or qualify for an exemption,” said Stephanie Avakian, co-director of the SEC’s Enforcement Division.

What do you think will happen to all DEX? Will this affect the value of all erc-20 as liquidity will now much harder as most DEX is the to go market of many ICO token that's not yet approve by centralized exchange.

This is surely gonna be a game changer not just for DEX but all trading platform

Topic: Game Changer for DEX as SEC charged Etherdelta founder (Read 118 times)