What if DEXs are banned in the future?

Mpamaegbu

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Quote from: Abiky on December 26, 2023, 01:41:54 PM

But what if governments decide to hunt down the developers of DEXs?

You think they aren't plotting that already? Come on, they're obviously at it (I would be shocked if they aren't). It's just that Dexs aren't easily manipulated like Cexs and that's why no evidence is showing yet. You think those politicians wielding enormous powers who've labelled this industry pro-money laundering aren't doing all they can to see how they can crack Dexs? But of course, they're.

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What do you think will happen if DEXs are "banned" in the future? Will they die? Or will they still survive (despite the fact that most people will avoid them to prevent jail time or being fined)?

I don't think they will die off if that happens. What I think will happen is that people will find a way to adjust around it. Perhaps another tech or invention will be born out of it. You know what they say – Necessity is the mother of invention.

_BlackStar

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Quote from: Abiky on December 26, 2023, 01:41:54 PM

What do you think will happen if DEXs are "banned" in the future? Will they die? Or will they still survive (despite the fact that most people will avoid them to prevent jail time or being fined)?

Nothing special - it was a setback for the industry, but the industry could still thrive under government regulations. I can completely understand the concerns - but the government absolutely doesn't want anything related to this industry to get out of their control, so it's likely they'll also go after DEX sooner or later.

Users might consider staying away from things the government bans - that would obviously be done to avoid financial losses. This is another risk that every investor needs to consider before they dive into the industry - meaning regulation and any changes to its rules are an important consideration if they want to invest.

doomloop

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Quote from: kentrolla on January 06, 2024, 11:12:14 AM

Quote from: crwth on January 02, 2024, 07:16:50 PM

I believe this would depend on the regulations put in place by the different governments, like how they will heavily check out what's happening to possibly remove the money laundering stuff. I think that's the biggest concern for regulating bodies. It would be hard to do but I think that could be the next one.

Mate, I don't think it would be an easy task for government to do because they don't control DEX or have any influence over DEX like they do have a hold for centralized exchanges and moreover even if they ban URL we have VPN services and even limited dependency which are on centralized storage will start shifting to decentralised exchanges. They cannot ban DEX but make it difficult for users to get fiat in exchange of Crypto which would lead people to explore other ways to do it.

What about Bitcoin? It is also decentralized but governments manage to ban it on their country. I know even not directly but that still causes an annoyance to the public. And I don't think many can go against with their rules by bypassing the restrictions applied because they know that governments eye are too sharp to spot them easily and gave them a tough punishment.

Decentralized exchanges has an advantage like users are free to trade without a KYC. This is probably one of the reasons why governments are after it. For me, I won't really worry since I'm fine on using a Centralized exchange. In fact I use it most of the times, over the decentralized one.

Sophokles

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Quote from: btc78 on January 06, 2024, 11:10:47 AM

Right now, centralized exchanges are, i would say, far more in danger when it comes to the government these past few months we see that the government are hellbent into putting restrictions or controlling some things related to coins and how an exchange function of course in fear these centralized exchanges obey

Cryptocurrencies are mainly made for decentralization and for the value of privacy if the decentralized exchanges were to be banned in the future it would be truly have a devastating impact in the community however i do not think it can be possible at least in the near future decentralization will make it harder for the government to track the people involved in such activities

Centralized exchanges can be shut down easily by the government, but if they want to ban decentralized exchanges as well, it won't have much impact as a user doesn't need to do KYC and the team behind the project can restrict users from a certain region from using them. What the government can do is ban the URL but there are so many ways to go around that problem and the user or the project will find the best solution for their own profit so that their user can use that service if the government bans their exchange URL.

Ben Barubal

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Quote from: Abiky on December 26, 2023, 01:41:54 PM

Governments seem to come up with something new to prevent crypto from achieving its full potential. From cracking down on mixers and enforcing KYC across centralized exchanges, they aim keep crypto under their control. The only things they can't manipulate or enforce the rule of law (aside from blockchain networks themselves) are decentralized exchanges.

But what if governments decide to hunt down the developers of DEXs? Or what if they estalish a law where developing a non-compliant DEX (no-KYC) can be subject to prosecution (jail time or fines)? If that happens, the industry will be doomed. With a US senator drafting the "Digital Currency Anti-Money Laundering Act of 2023", anything's possible.

What do you think will happen if DEXs are "banned" in the future? Will they die? Or will they still survive (despite the fact that most people will avoid them to prevent jail time or being fined)?

Your input will be greatly appreciated. Thank you very much.

How can a country resist something that is out of control? The bitcoin they can't do because it's decentralized—how much more in Dex yet? It just came to mind that the Dex was unregulated, and we know that no government has jurisdiction here.

But let's still suppose that it really is, so that means our only chance and choice is that centralized exchanges are the only ones we can use for the exchange of cryptocurrencies and bitcoin. Which is the government controlled as if the former is under the government control?

Huppercase

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Quote from: Abiky on December 26, 2023, 01:41:54 PM

Governments seem to come up with something new to prevent crypto from achieving its full potential. From cracking down on mixers and enforcing KYC across centralized exchanges, they aim keep crypto under their control. The only things they can't manipulate or enforce the rule of law (aside from blockchain networks themselves) are decentralized exchanges.

I don't think so unless there is a multiple report about a dex that allow scammers to swap hack coins within a pool and many times I have seen in protocols, if there is an announcement of a hack that happened in any of the chain and they notice that the hacker or scammer is using the Dex to launder the coins into another, they quickly pass a decentralized vote to ban the wallet. They are not doing it because of the government but they do it because it's not right for a person to launder peoples wealth and I have experience it myself.

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But what if governments decide to hunt down the developers of DEXs? Or what if they estalish a law where developing a non-compliant DEX (no-KYC) can be subject to prosecution (jail time or fines)? If that happens, the industry will be doomed. With a US senator drafting the "Digital Currency Anti-Money Laundering Act of 2023", anything's possible.

What do you think will happen if DEXs are "banned" in the future? Will they die? Or will they still survive (despite the fact that most people will avoid them to prevent jail time or being fined)?

Your input will be greatly appreciated. Thank you very much.

Dexes are not even the problem of government because blockchain is transparent and it's an open ledger, even a person use a dex to carryout scam, they will trace that transaction further to the final point to where the coins end and if there is a conversion to fiat, that's where they identify the scammer.

Now the problem is that fiat doesn't convert coins to fiats, so its just from one coin to another which the government can track further and because it's centralized exchanges that supports this fiats p2p selling, they mandate them to forced KYC in everyone throat so they can know where money is coming and where money is going, Dexes can't be held responsible for such.

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With no ownership, I don't think they can do a lot about DEX. The problem is, they are just erasing something without anything back in return unlike when they ban Binance or any popular CEX.
I think somehow they will get tired of attacking DEX and they will just keep it going on. I mean, government personalities who are aiming to be popular for vote reasons won't get anything out of it because there's no proof of their work. They cannot take advantage of it unlike Binance who was attacked by the SEC so they get all the attention now and Gary Gensler became a popular name in the crypto industry that can be used when he runs office.
They can ban all the DEXs as much as they like but as I said earlier, this won't them get popular to help out in their run for the office. So, who would waste time at doing this next time if they know there's nothing in return? I doubt they will still care about it.

zasad@

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Quote from: Abiky on December 26, 2023, 01:41:54 PM

Governments seem to come up with something new to prevent crypto from achieving its full potential. From cracking down on mixers and enforcing KYC across centralized exchanges, they aim keep crypto under their control. The only things they can't manipulate or enforce the rule of law (aside from blockchain networks themselves) are decentralized exchanges.

But what if governments decide to hunt down the developers of DEXs? Or what if they estalish a law where developing a non-compliant DEX (no-KYC) can be subject to prosecution (jail time or fines)? If that happens, the industry will be doomed. With a US senator drafting the "Digital Currency Anti-Money Laundering Act of 2023", anything's possible.

What do you think will happen if DEXs are "banned" in the future? Will they die? Or will they still survive (despite the fact that most people will avoid them to prevent jail time or being fined)?

Your input will be greatly appreciated. Thank you very much.

Large DEXs will be regulated by laws and there will be whitelists and blacklists. Anyone can use older versions of UniSwap and similar DEXs, but without liquidity these exchanges will not be able to attract users. And if the exchange, despite all the efforts of regulators, gains popularity, then watch the story of Tornado Cash.

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Quote from: kentrolla on January 06, 2024, 11:12:14 AM

Quote from: crwth on January 02, 2024, 07:16:50 PM

I believe this would depend on the regulations put in place by the different governments, like how they will heavily check out what's happening to possibly remove the money laundering stuff. I think that's the biggest concern for regulating bodies. It would be hard to do but I think that could be the next one.

Mate, I don't think it would be an easy task for government to do because they don't control DEX or have any influence over DEX like they do have a hold for centralized exchanges and moreover even if they ban URL we have VPN services and even limited dependency which are on centralized storage will start shifting to decentralised exchanges. They cannot ban DEX but make it difficult for users to get fiat in exchange of Crypto which would lead people to explore other ways to do it.

Do you mean that the decentralized exchanges can not be control by the government? It is very possible and I pray that time will not come because this will have a great consequences on the entire crypto market. The decentralized exchanges are registered and licensed by government firms given the pass to operate. So there is no way we are not going to see the hand of the government if that time if restrictions ever comes to the crypto market. The government has control on us and there is no way we avoid that.

kentrolla

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Quote from: crwth on January 02, 2024, 07:16:50 PM

I believe this would depend on the regulations put in place by the different governments, like how they will heavily check out what's happening to possibly remove the money laundering stuff. I think that's the biggest concern for regulating bodies. It would be hard to do but I think that could be the next one.

Mate, I don't think it would be an easy task for government to do because they don't control DEX or have any influence over DEX like they do have a hold for centralized exchanges and moreover even if they ban URL we have VPN services and even limited dependency which are on centralized storage will start shifting to decentralised exchanges. They cannot ban DEX but make it difficult for users to get fiat in exchange of Crypto which would lead people to explore other ways to do it.

btc78

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Right now, centralized exchanges are, i would say, far more in danger when it comes to the government these past few months we see that the government are hellbent into putting restrictions or controlling some things related to coins and how an exchange function of course in fear these centralized exchanges obey

Cryptocurrencies are mainly made for decentralization and for the value of privacy if the decentralized exchanges were to be banned in the future it would be truly have a devastating impact in the community however i do not think it can be possible at least in the near future decentralization will make it harder for the government to track the people involved in such activities

Blitzboy

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Countries might crack down on DEXs. I mean, they've tried to put a leash on everything from the internet to music sharing, right?

My takeaway is that the crypto community is robust. I bet my last Satoshi that anonymous contributions would rise if governments targeted DEX devs. Imagining a decentralized resistance movement is poetic, right? Legislation targeting non-compliant DEXs is like regulatory whack-a-mole. One goes down, two more pop up.

Acknowledge the global stage. Some countries may go "big brother" on DEXs, but others may embrace them. Due to the internet and DEXs' nature, they can operate worldwide. Tor is a refuge for the digitally displaced. Will DEXs survive bans? Yes, they will. They do well in the darkest parts of the web and are always one step ahead of the authorities. Guess which mouse has a jetpack in the cat-and-mouse game?

KingsDen

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Quote from: Abiky on December 26, 2023, 01:41:54 PM

But what if governments decide to hunt down the developers of DEXs? Or what if they estalish a law where developing a non-compliant DEX (no-KYC) can be subject to prosecution (jail time or fines)? If that happens, the industry will be doomed. With a US senator drafting the "Digital Currency Anti-Money Laundering Act of 2023", anything's possible.

I had thought that you asked if government decides to hunt down DEXs, not untill I read that you meant that if the government hunt down the DEX developers. These are two different things. For the former, government cannot shut down a true decentralized exchange whose protocol is 100% open source. Then about the later, a true decentralized developer cannot be tracked by the government when he goes anonymous and private. And besides, if a particular government proves stubborn, there's room for relocation.

Quote from: jacafbiz on December 26, 2023, 02:37:28 PM

I think the fear people have with these governments ban this and that should be alleviated with the recent change of tunes from different government all over the world, what they can do is to find a way to control it, ban as not really work, especially for things with huge demand like drug, people will find a way round it.

I have always maintained my statement. In as much as there's no central government of the world, it will be difficult for government to implement their shutting agenda. While one government will ban DEX today, another will approve it.

tygeade

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Quote from: electronicash on January 04, 2024, 01:13:47 PM

something like the IPFS for the server of the dex website may be the most decentralized but seems not possible yet. the project Filecoin was supposed to function this way afaik, its development however is just too slow. if there is something like decentralized storage, it will mean the government will not be able to shut down a website.

but there are wallet apps today with built-in exchanges, i think this is working as decentralized.

I would guess that when you are dealing with servers, it is really not that hard to find one that will not be taken down. Banned? Sure, but banned is not the same as taken down and that should be important.

Plus, you could literally have your own server, what we call a "server" is just a pc, I mean of course bigger ones look different, but if you could just have one pc that is running 7/24 then you will be fine, or you could even buy one of those server looking servers and not a pc, and that would run non-stop and you will not need anyone else. Want even bigger independence? Put some solar panels that means you are going to end up with non-stop electricity as well if you can get enough sun light to it.

So there are very few things, but it is possible to keep it running forever. I believe that is not going to be possible if you build it at New York though, you also have to pick a place that government won't try to reach and stop you, has to be somewhere with more easy laws.

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Quote from: MFahad on January 05, 2024, 08:12:48 AM

Government cracked down only those mixers who catched for black money support lik one start from C and other from S while all other mixer are working fine and have not faced any issue from government. Decentralization doesn't mean that we will support bad people/bad operation. Tell me If some one hack your wallet and government catch it and punish it, whom you will support?

I'd support the government only if it catches the criminals. But when it goes too far (violating privacy rights, promoting censorship), that's when we need to find alternatives that put decentralization/censorship-resistance/privacy above all else. It's all about making the system neutral (eliminating the middleman) for a greater good.

Quote from: MFahad on January 05, 2024, 08:12:48 AM

How will dex banned when they are fully anonymous? Have btc banned despite of huge efforts from world? In my country crypto is fully banned but it's doesn't affected single person and we are doing all crypto operation buying/selling, holding without any problem. DEX will not be banned as longer as team are fully anonymous.

Of course not. If developers of the DEX are anonymous, there's no way governments will be able to enforce the rule of law. Unfortunately, most developers reveal their identities to help bring the confidence of mainstream investors. They claim their project will be tagged as a "scam" if no one knows who they really are (anonymous). Seriously? Does this mean we should call Bitcoin a "scam" because of its unknown creator (Satoshi Nakamoto)? Absolutely not.

I guess truly-decentralized exchanges will remain a "niche" only used by those who actually care about privacy and freedom. They are quite small compared to their centralized counterparts. We can only guess the industry will become more centralized in the future. Nothing is set in stone yet, so lets hope for the best.

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Quote from: criptoevangelista on January 05, 2024, 08:14:56 AM

Banned I think is very difficult, as everything is decentralized, but devs can be persecuted, but it is easy to circumvent, just don't use your real name and everything else, use pseudonyms and bitcoin as currency: problem solved

Everything is not decentralized as all these cryptographic web applications are still using centralized servers like AWS and other alternatives. If government wants, they can force these companies to shut down their applications or ban those URL in a particular region. If they ban the URL then people will use VPN but for the centralized storage part there are projects that are offering decentralized storage services that can be used to tackle government interveining. I think most of the projects will start using decentralized storage solution at some point in the future.

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Banned I think is very difficult, as everything is decentralized, but devs can be persecuted, but it is easy to circumvent, just don't use your real name and everything else, use pseudonyms and bitcoin as currency: problem solved

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Quote from: Abiky on December 26, 2023, 01:41:54 PM

Governments seem to come up with something new to prevent crypto from achieving its full potential. From cracking down on mixers and enforcing KYC across centralized exchanges, they aim keep crypto under their control. The only things they can't manipulate or enforce the rule of law (aside from blockchain networks themselves) are decentralized exchanges.

Government cracked down only those mixers who catched for black money support lik one start from C and other from S while all other mixer are working fine and have not faced any issue from government. Decentralization doesn't mean that we will support bad people/bad operation. Tell me If some one hack your wallet and government catch it and punish it, whom you will support?

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What do you think will happen if DEXs are "banned" in the future? Will they die? Or will they still survive (despite the fact that most people will avoid them to prevent jail time or being fined)?

Your input will be greatly appreciated. Thank you very much.

How will dex banned when they are fully anonymous? Have btc banned despite of huge efforts from world? In my country crypto is fully banned but it's doesn't affected single person and we are doing all crypto operation buying/selling, holding without any problem. DEX will not be banned as longer as team are fully anonymous.

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Honestly the government only enforces its mandate on the centralized constitution and has no control over the decentralized sites. Crypto exchanges are linked to investment demand. Cannot ban DEXs relying on differentiating blockchain innovations within the crypto market must strategically differentiate the project and capture the attention and support of a highly competitive potential investor. Study existing token platforms with which to compete.

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Quote from: |MINER| on January 05, 2024, 03:10:14 AM

Nothing can be do if the government hunts down the developer of dex's but I don't think that it will be happening at once on all places. And I think if they do the banned on dex's there will be must different way will invented. Moreover, If those dex's developers and owners hide their identity like as the founder of bitcion sathosi then government will nothing can do if they ban on dex's on future.

DEX are decentralized so how can they be banned ?

Even if the government are strict toward the adoption of crypto currencies, they can only ban the centralized exchanges but it is not possible to ban the dexes. Just like no one can ban bitcoin, the same goes true for the decentralized platforms.

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