Topic: What if DEXs are banned in the future? - page 2. (Read 492 times)
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.
If the Decentralized Exchange is real a Decentralized Exchange then I don't think it is possible for the SEC to ban it and just like they can't ban other decentralized projects but whereby the DEX is not active as the name applies then the SEC can shut them down and other Centralized Exchange or the way they are doing to mixers. Probably they have even tried their best to check the money laundering that is going on there but because they can't have access to the site, they can't do anything for now. But we have to know that not all the DEX are real DEX. There are some that are just bearing the name.
DEX become popular because they dont need intermediaries or central control which gives users more privacy and security.
But it is important to know that decentralized technology is hard to completely get ban.Blockchain networks are decentralized and people can use them anonymously so it is difficult for authorities to track and shut down these platforms. But thing is that cryptocurrencies are used all over the world so even if DEX are ban in one place they can still be used in other places where the rules are more friendly.
Just for an example Crypto is ban in my country but I am still using the cryptocurrencies CEX DEX and the other platforms. If will impact for a while when the news will come but after that the market will become to its level again.
But it is important to know that decentralized technology is hard to completely get ban.Blockchain networks are decentralized and people can use them anonymously so it is difficult for authorities to track and shut down these platforms. But thing is that cryptocurrencies are used all over the world so even if DEX are ban in one place they can still be used in other places where the rules are more friendly.
Just for an example Crypto is ban in my country but I am still using the cryptocurrencies CEX DEX and the other platforms. If will impact for a while when the news will come but after that the market will become to its level again.
I think if DEX exchanges are banned in future, then crypto will suffer a lot. But they won't die but come up with an alternative, probably because if an exchange is banned, they'll probably use an alternative method later, just like if the dex exchange is banned, they might come up with an alternative later. Even if the government introduced such laws and put people in jail and fined them, most people would not use such exchanges, and they would lose a lot of money. Although most people prefer exchanges without KYC just for their privacy, but if the government uses such a system that is mandatory, then this law must be obeyed.
Bitcoin is born with block chain technology.The function of block chain is to keep all the information secure. If the authorities have to control or hold someone accountable, then there is no need for this block chain technology and transactions can be done through the central bank. So in my opinion if DEXs are banned then it can have serious impact for the crypto currency ecosystem. DEXs operate without a central authority, allowing users to trade directly with each other using smart contracts and blockchain technology.So i think that if any countries government want to do that it will never be done .
If people are getting some kind of advantages from decentralized exchanges, they will surely come up with something if the government tries to ban the process. Look at Bitcoin. It is not being operated by a single person but by many people across the whole world. What if we can make something similar for decentralized exchanges.
Not being operated by single entity, instead people all over the world will have some kind of connection in order to keep it alive so that no law enforcement can track it down to its core and stop it or destroy it.
I don't know if that is possible but after seeing Bitcoin technology, I think people will be able to make something like this in the future for sure which will ensure no interference from the law enforcement. So that people will have full access to their assets and their privacy.
Not being operated by single entity, instead people all over the world will have some kind of connection in order to keep it alive so that no law enforcement can track it down to its core and stop it or destroy it.
I don't know if that is possible but after seeing Bitcoin technology, I think people will be able to make something like this in the future for sure which will ensure no interference from the law enforcement. So that people will have full access to their assets and their privacy.
DEXs are already based on Peer-to-Peer technology. Why do you think most of them have code executed on a Blockchain network (smart contracts)? But if you're talking about hosting the interface on a P2P network such as IPFS or Zeronet, that's another subject. The only DEXes that are truly-decentralized would be Bisq and Block DX. They can only be accessed by downloading and installing the software on your PC. For advanced users, it's possible to access Uniswap by directly interacting with the smart contracts through a CLI.
Governments usually come up with new tactics to try to prevent decentralized tech from gaining traction. The community must remaim vigilant by supporting decentralization/censorship-resistance whenever possible. Who knows what will happen in the future?
I hate to admit it but that's it. A country that has no benefit over a service that runs on their jurisdiction will have no doubt will ban a service like a dex.
They can ban it so that their citizens won't use it but they can't close or stop its operation. They just can simply ban the website from the IP of theirs.
It is also happening in centralized exchanges where countries are banning the likes of Binance because they are unregistered.
They can ban it so that their citizens won't use it but they can't close or stop its operation. They just can simply ban the website from the IP of theirs.
It is also happening in centralized exchanges where countries are banning the likes of Binance because they are unregistered.
Only if the domain is hosted on a centralized service. After all, ICANN controls all common TLDs (.com, .net, .org, etc). What the government can't censor are decentralized domains. I'm talking about those running on blockchain networks such as Namecoin and Ethereum. A frontend interface for Uniswap hosted on a decentralized CDN or P2P network with a decentralized domain name would surely do the trick. I've seen Uniswap's code hosted on IPFS, so anything's possible.
Most developers are afraid of the government, so they will try to avoid getting involved in the development of a truly-decentralized and censorship-resistant crypto exchange. Those that do will have their identity hidden from the general public (anonymous). It's hard to find someone who cares about anonymity/privacy these days. We should expect centralized exchanges to continue dominating the industry for long. The future can't be predicted, so lets hope for the best.
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 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.
We don't need to keep receiving ourselves of money laundering. This is will always continue and it's not even today that all these started.We are going to be seeing cases of money laundering everytime and the government should not think that every issues of money laundry will stop with crypto. This had been in existence before now and we should not see cryptocurrency as a safe heaven because money laundry had been in existence even before I was born and we should not think it's going to stop soon.
If people are getting some kind of advantages from decentralized exchanges, they will surely come up with something if the government tries to ban the process. Look at Bitcoin. It is not being operated by a single person but by many people across the whole world. What if we can make something similar for decentralized exchanges.
Not being operated by single entity, instead people all over the world will have some kind of connection in order to keep it alive so that no law enforcement can track it down to its core and stop it or destroy it.
I don't know if that is possible but after seeing Bitcoin technology, I think people will be able to make something like this in the future for sure which will ensure no interference from the law enforcement. So that people will have full access to their assets and their privacy.
Not being operated by single entity, instead people all over the world will have some kind of connection in order to keep it alive so that no law enforcement can track it down to its core and stop it or destroy it.
I don't know if that is possible but after seeing Bitcoin technology, I think people will be able to make something like this in the future for sure which will ensure no interference from the law enforcement. So that people will have full access to their assets and their privacy.
I hate to admit it but that's it. A country that has no benefit over a service that runs on their jurisdiction will have no doubt will ban a service like a dex.
They can ban it so that their citizens won't use it but they can't close or stop its operation. They just can simply ban the website from the IP of theirs.
It is also happening in centralized exchanges where countries are banning the likes of Binance because they are unregistered.
They can ban it so that their citizens won't use it but they can't close or stop its operation. They just can simply ban the website from the IP of theirs.
It is also happening in centralized exchanges where countries are banning the likes of Binance because they are unregistered.
Only if the domain is hosted on a centralized service. After all, ICANN controls all common TLDs (.com, .net, .org, etc). What the government can't censor are decentralized domains. I'm talking about those running on blockchain networks such as Namecoin and Ethereum. A frontend interface for Uniswap hosted on a decentralized CDN or P2P network with a decentralized domain name would surely do the trick. I've seen Uniswap's code hosted on IPFS, so anything's possible.
Most developers are afraid of the government, so they will try to avoid getting involved in the development of a truly-decentralized and censorship-resistant crypto exchange. Those that do will have their identity hidden from the general public (anonymous). It's hard to find someone who cares about anonymity/privacy these days. We should expect centralized exchanges to continue dominating the industry for long. The future can't be predicted, so lets hope for the best.
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.
what is the reason the government wants to ban dex? is it because they don't enforce kyc and don't comply with regulations that it needs to be closed? if so, they need extra energy to track down these dex platforms, which is actually pointless, because when dex is banned by the government it will not make developers give up and not want to develop the platform anymore, instead developers will come up again with new ways to trick the government and it's quite easy for them to do that.
I hate to admit it but that's it. A country that has no benefit over a service that runs on their jurisdiction will have no doubt will ban a service like a dex.They can ban it so that their citizens won't use it but they can't close or stop its operation. They just can simply ban the website from the IP of theirs.
It is also happening in centralized exchanges where countries are banning the likes of Binance because they are unregistered.
Blacklisting address, eh? So much for censorship-resistance. I wouldn't call Uniswap a "decentralized exchange", especially when it's prone to censorship. Not only that, but the source code of the project is limited (open source after a few years of each iteration). I miss the old days when we had truly-decentralized exchanges such as EtherDelta and ForkDelta. Ever since Uniswap came into fold, things haven't been the same. Even though there's still a small number of truly-decentralized exchanges, the market is largely dominated by both semi-centralized and centralized players. This is harmful for the crypto industry in the long run. It'll be extremely-easy to enforce regulations at will.
If only developers stopped thinking the money and started caring about decentralization/censorship-resistance, crypto would've achieved its full potential by now. Wasn't the whole point of Bitcoin to eliminate the middleman? I wouldn't be surprised if KYC-compliant "DEXs" emerge in the long run. Most people won't care about giving away their personal info as long as they get convenience in return. It will be a dark future for crypto/Blockchain tech, unfortunately.
And then again Etherdelta and ForkDelta had their own issues, which make modern dexes look so easy and safe. I made some money by just grabbing stupid buy and sell orders, as liquidity was working quite differently and we had to fill every order seperately. If we didn't lose on the gas war on that. My friends weren't in crypto at the time so luckily i didn't have to explain that mess to anyone.
I’d appreciate if you explain what you mean about you not calling Uniswap a decentralized exchange. I don’t understand how you mean that they are prone to censorship.
If you really want to know, I'd suggest you read the following articles:
https://news.bitcoin.com/uniswap-censors-253-crypto-addresses-blacklisted-for-crime-sanction-associations/
https://thedefiant.io/decentralized-or-not-uniswap
From censoring addresses to hiding tokens, Uniswap fails to be a truly-decentralized and censorship-resistant exchange for the unbanked. I know the censorship case was related to sanctioned addresses by the US government. But what makes you think they won't do the same with an average person in the future? If some government flags you as a "terrorist" or a criminal, you will be unable to swap your tokens on Uniswap.
I believe Web 3.0 should be neutral for true decentralization + censorship-resistance. Unfortunately, there's only a small number exchanges that adhere to crypto's original principles. Regulatory pressure is increasing each day, so I wouldn't be surprised if DEXs are banned in the future.
Wow. I never heard of this. But isn’t it because they were under the pressure of doing it. I’m not saying that it should give room for the act but it’s definitely from the fact that it’s the government. And maybe who knows what action would have been taken if they did nothing about it. I saw where they speak of fraud/hacks, but then banning the addresses does not actually stop them. Well, this is one of the reason why DEX is better than CEX. Innocent people were affected (from what I read), if it were CEX, they’ll so block everything. But with uniswap, you just can’t transaction but the fund is yours anyways. And someone was also saying that it’s just a front end thing, so technically it’s possible to bypass it if you communicate to the smart contract directly (not through Uniswap website).
They can only restrict access to the DEX website. Because by its nature, DEX is a set of smart contracts. Of course, they can influence the developers of a particular DEX, if their jurisdiction allows it. You can always use a VPN and access the DEX website. But any DEX will strive to increase the number of its clients and thus can meet certain government/regulatory requirements.
what is the reason the government wants to ban dex? is it because they don't enforce kyc and don't comply with regulations that it needs to be closed? if so, they need extra energy to track down these dex platforms, which is actually pointless, because when dex is banned by the government it will not make developers give up and not want to develop the platform anymore, instead developers will come up again with new ways to trick the government and it's quite easy for them to do that.
DEXes run on smart contracts, and these smart contracts live on blockchain. So, the only way government can take DEXes down is by destroying the blockchain itself. This might be easy to do with centralized blockchains, but much harder with Ethereum and such.
Other thing is, they can force close UIs on which these smart contract can be interacted on but crypto community is filled with enough geniouses who can conjure one up outta nowhere for public to use. Governments bans that one, and other one pops up.
If it's mere UI access ban/block for particular region, VPNs/Proxies are enough to get around that.
Take an example of Uniswap, there are telegram bots which allow you to trade without accessing Uniswap frontend like Mizar Trading Bot [1], other is using scripts, have a look at this [2].
I feel if governments try to ban DEXes, it will be a rabbit hole that they will never find solution for.
[1] Mizar Telegram Bot
[2] How to Swap Tokens on Uniswap with Ethers.js
If you gonna use any telegram bots, advisable to use new wallet than importing your main wallet.
Other thing is, they can force close UIs on which these smart contract can be interacted on but crypto community is filled with enough geniouses who can conjure one up outta nowhere for public to use. Governments bans that one, and other one pops up.
If it's mere UI access ban/block for particular region, VPNs/Proxies are enough to get around that.
Take an example of Uniswap, there are telegram bots which allow you to trade without accessing Uniswap frontend like Mizar Trading Bot [1], other is using scripts, have a look at this [2].
I feel if governments try to ban DEXes, it will be a rabbit hole that they will never find solution for.
[1] Mizar Telegram Bot
[2] How to Swap Tokens on Uniswap with Ethers.js
If you gonna use any telegram bots, advisable to use new wallet than importing your main wallet.
That's the beauty of decentralization. You can still use a "banned" smart contract/dApp as long as the underlying Blockchain is alive and running. I've read that it's possible to interface with smart contract code through a CLI (usually a node daemon like Geth). But it's a little complicated for people without any technical background/knowledge. I think it's best to create a front-end interface hosted on a decentralized CDN or P2P network using a decentralized TLD. Something like IPFS + ENS would do the trick.
Governments are going to have a hard time trying to shut down a DEX running on censorship-resistant infrastructure. Unfortunately, developers are too lazy to make this happen. Most of them don't care about decentralization/censorship-resistance as long as their pockets are filled with money. At least, everything is open source. Maybe someday our dreams of true decentralization + censorship-resistance will come true?
DEXes run on smart contracts, and these smart contracts live on blockchain. So, the only way government can take DEXes down is by destroying the blockchain itself. This might be easy to do with centralized blockchains, but much harder with Ethereum and such.
Other thing is, they can force close UIs on which these smart contract can be interacted on but crypto community is filled with enough geniouses who can conjure one up outta nowhere for public to use. Governments bans that one, and other one pops up.
If it's mere UI access ban/block for particular region, VPNs/Proxies are enough to get around that.
Take an example of Uniswap, there are telegram bots which allow you to trade without accessing Uniswap frontend like Mizar Trading Bot [1], other is using scripts, have a look at this [2].
I feel if governments try to ban DEXes, it will be a rabbit hole that they will never find solution for.
[1] Mizar Telegram Bot
[2] How to Swap Tokens on Uniswap with Ethers.js
If you gonna use any telegram bots, advisable to use new wallet than importing your main wallet.
Other thing is, they can force close UIs on which these smart contract can be interacted on but crypto community is filled with enough geniouses who can conjure one up outta nowhere for public to use. Governments bans that one, and other one pops up.
If it's mere UI access ban/block for particular region, VPNs/Proxies are enough to get around that.
Take an example of Uniswap, there are telegram bots which allow you to trade without accessing Uniswap frontend like Mizar Trading Bot [1], other is using scripts, have a look at this [2].
I feel if governments try to ban DEXes, it will be a rabbit hole that they will never find solution for.
[1] Mizar Telegram Bot
[2] How to Swap Tokens on Uniswap with Ethers.js
If you gonna use any telegram bots, advisable to use new wallet than importing your main wallet.
With the level of know in the space now, there is no way government can totally ban Dexes, you can fork the protocol and start your own exchange, Dexes are more like P2P trade. 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.
Governments may in the future be able to control the operation of decentralized exchanges, and they will also be able to monitor and control their work and even suspend transactions and seize accounts. Any decentralized exchange is registered in any state. And this state may well influence its work. If decisions are made at the level of the G20 countries, then most states will implement this decision. It is possible that some states will not have much influence on decentralized exchanges and will create something similar to offshore zones. This may work for a while. But it is already important that cryptocurrency is not prohibited and is under moderate control of states. 
IMHO, they will still survive regardless of what laws these senators or lawmakers from the US make. The world isn't just all about US and there are countries that don't rely on their policies with US' sanctions and laws and that's why it won't matter to some countries and whoever makes and develops these DEXes are pretty aware of those laws. They will continue to exist and something terrible will be the reason for them to cease like having no volume and liquidity or a massive hack.
This isn't just about the US government alone, at least they don't like the privacy but some governments don't even want the bitcoin to exist and CHina and Russia are the names that came into mind who will be in the opposite of any idealogy but it comes to crypto the condition of the two countries are worse too.
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