Topic: What if DEXs are banned in the future? (Read 522 times)

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.

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.

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.

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.

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.

  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?

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.


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.

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.

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.

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.

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.

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

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?

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.

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.

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.

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.



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.

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.

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

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?


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.

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.

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.

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.

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 .

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?

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.

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.

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.

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.

Good point, i guess ether delta more decentralized in a way. It got sold though.

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.

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.

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.

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[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.

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.

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.

maybe the DEX system will switch to like CEX. if they want to survive with their business and not lose customers, of course, they have to adapt to government regulations.
This is indeed unpleasant, but what we fear may also happen in the future.
if there was a problem that entangled an entire centralized exchange, it would certainly annoy most users. if exchanges stick with what they are doing, still users will probably switch and leave CEX.

I just can’t imagine that and it looks almost impossible to happen now, so I can think much of a way out if they are completely banned in the future. We know that the DEXs are a big deal on the government’s side and they’ve been devising means that they can clamp it down and have it operate like how CEXs does now. The government can’t be underrated and they can do whatsoever they wish, some just have to take time before it’s finally achievable. I am no scared of them being banned in the future even though I know it won’t be a nice thing to the crypto community, in spite of all this, I know bitcoin will still prevails.

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.

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.


Unfortunately in this context, everyone doesn’t think the same. Satoshi did his part and created what the world was lacking, we’ve seen different cryptocurrencies that are the exact opposite and work against his purpose of creating Bitcoin. I wouldn’t be surprised if I saw switch DEX too, it will be so ironic.

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. 

No doubt government has been a great threat to crypto currencies just as you said. from baning of mixers and enforcing people on kyc but i dont think its possible to enforce a law that will affect Dex. Because Dex is DEX while CEX is CEX. Decentralized exchange (DEX) is an exchange of crypto that store and send coin from wallet to wallets while Centralised exchange (Cex) is an exchange that store and trade crypto currencies through p2p with the use of kyc. And for one to trade your coin for Fiat you would definately used a Centralized exchange for p2p. So since it's almost useless to fight the impossible i think it's only CEX they will target. Because whomsoever that did money laundering with DEX will definitely need CEX for Fiat exchange. That is why they can only attack CEX.

Nothing will happen if Dex is ban. There is no way both of them DEX and CEX will have issues at a time. In as much as government is kicking against crypto currency, I think they too also invest behind Close doors and act as if they don invest publicly. But one thing you should understand is that what ever have an advantage also have a disadvantage. So baning DEX will also affect those government entities that did money laundering and invested in crypto. thereby they will see it as needles to do such because they are also a pertner In crime. That is how I see it in my own way.

What kind of law will it be that you asked DEX to get user KYC? I am on the fence for this conversation because I understand both parties… the government wants to know what’s going on, who is transacting the money, etc because people launder money. The decentralized system wants to give and respect user anonymity. So, what the government wants is understandable but making such law will just mess up crypto (to an extent).

It might go so far, as it seems most dexes are in core very centralized, but more plausible scenario is that they need to blacklist addresses to stay alive. Uniswap has done this and i am guessing other relevant DeXes are required to do this also.

I am guessing that some dexes will just get more automated and decentralized enough that they can't be shut down. This would leave most of the AML law responsibility to centralized financial services that are required to freeze money from blacklisted accounts or money from mixers etc.

Bitcoin can be legal in some countries and not all because most of these countries have perceived bitcoin to be the only threat that will drive away their good chances.nThe government is powerful and authorized to permit any project they pleases. The government will poses threats and ban on this modern day projects because they found most of them to become threating to their own revenue and development, none of these citizens still fancy the day-to-day activities of the government, rather they will look for another means to check the possibility of scouting out another means to triggered their activities without the knowledge of the government.

Bitcoin is illegal in many regions of the world so how do people from those region make investments in bitcoin? If government ban dex then people will not be able to use them legally and some people will not use them to avoid any trouble but most of the users will try to look for any alternative way to go over the system. Government can pass laws but if they are against the demands of the community, then people will figure out their own way to bypass the law so that they can still use the product if they benefit from it.

You are absolutely right that it is very challenging for governments to ban DEXs because they have no centralized authority to control their operations. It is worth noting that they are not immune to government regulatory or legal action, however, It will be difficult for government to ban DEXs as they operate on open source block chain technology, and cryptocurrencies can be traded peer to peer even in the absence of formalized trading platforms.

Most DEXs aren't truly-decentralized, so it's easy enough to shut them down if they don't comply with KYC/AML laws. Developers tied to semi-decentralized exchanges will have no choice but to integrate KYC to avoid prosecution from the government. Only a small minority of DEXs (those that are truly-decentralized) would be completely "impenetrable". If they are made "illegal", DEX liquidity will decline at a very fast pace. That's because most people will avoid them out of fear from the government.

At least we know DEXs won't be going anywhere thanks to their open source nature. What stopping anyone from creating a fork anonymously? Trades will happen under the radar of mainstream governments. As long as there's one truly-decentralized exchange alive, we should have nothing to worry about.

As people have already explained, it would be difficult to block DEX. They can ban the IPs and domains but there could be many of those proxies. Another serious way of stopping it would be the criminalizing of using of DEX and arresting people for using it. That would certainly stop most people.
If initiated and promoted by the US, they could implement on most of the world. I don't think that's a likely scenario but you never know considering how low the authorities can go for holding on to their power.

I can confidently claim that there is no such thing as a single point of control in a DEX. How do you think anyone, even someone as powerful as the government, can control, ban or regulate that? The decentralized nature of these exchanges makes them technically impossible to be banned.

So do I think that any DEX is going to be banned in the future? No. It is extremely unlikely. And the only reason why I say unlikely is because I do not know what kind of technology the future will bring us. We might live in a dystopian future, in a world where everyone is monitored all the time. That might break decentralized technology.

However there do exists exchanges which claim to be DEX but are not. Those can be banned.

Decentralized exchanges will eventually be banned by all governments. We have started seeing this actions from the United States and slowly other allies of US will start following the same. So there is no question whether the decentralized exchanges will be banned or not. We need to consider that it will be banned and all crypto users will have to follow usual KYC guidelines for using centralised exchanges.

I think it is better to be mentally prepared for the inevitable. Because I do not see governments allowing unidentified transactions in cryptocurrency ever in the future. They have slowly started implementing it and the ban on crypto mixers is just the beginning of it.

It's possible with the current build of most "decentralized" exchanges but it will probably become more resource intensive for the Government to implement such policies. They may want to just focus on the various centralized fiat-payment gateways to combat anti-money laundering since it's where most cryptocurrencies end up anyway.

The struggle between regulators and decentralized exchanges (DEX) is very tricky, but the end is not coming soon, the situation should not change next year. This complex process of prohibition will be accompanied by small attempts by the government to change the legal framework. The lack of a central authority or server makes it difficult for governments to shut them down completely.

Why do you think the government would try to ban a DEX, they have tried to ban crypto trading earlier, and the result was not what the government expected. Recently Nigeria has come out of the crypto ban and in the past India went through the same phase.

Why is it impossible to ban a DEX? The simple reason being they as in the DEX are not available in the real world. An outright ban is not possible because DEX does not have a central entity or a target server. To shut them down a government would need to shut the internet, it can only happen in a country where democracy does not exist.

I don't think that any government can come up with a ban on DEX, what I understand is that they might come up with regulations. That being said they might force individual wallet holders to pass KYC using the data that these DEX hold. They might force a DEX to strictly follow their regulations. I do not know how they would do it but I am certain it is not that easy to ban them.

Various privacy-enabled DEXs are possible. Government won't know what citizens do with crypto while there's the right to remain silent.

The worry is that governments don't like DEX in anyway because they don't control it, something in their domain that concerns finance and there's no how that they can monitor the currency flow. Looking from the governments perspectives I think that it can be for security reasons that can make them to consider ban of DEX, probably money laundering for illegal activities in respective countries.

If DEX ban is achieved then the purpose of privacy in Bitcoin will be defeated, it'll no longer be anonymous like Satoshi Nakamoto, envisioned, it'll end up just like another currency in digital form. I sincerely hope that this does not happen because decentralization is the core of Bitcoin, without it the privacy that it's holders enjoy will be lost.

I think we have already seen fines and pressure being mounted on such exchanges. A good example was Etherdelta where the owners were fined, and then we had IDEX starting to ask for KYC from users citing regulatory pressure.

We have also seen some so-called decentralized platforms censoring transactions, so yes, bans and sanctions are very possible for DEXs as well. A true DEX like Bisq would be hard to censor.

I don't think they should do that or else the community will surely enraged, they probably will get some cut or enforce a regulation on these DEXs. I wouldn't think it would lead to a ban on all DEXs but probably a few will stay. If they are banned surely they'll die, the government just don't want something innovative that is flourishing that they couldn't control at all.

Decentralized exchanges pose a unique challenge for government regulation due to their decentralized structure.  Unlike centralized exchanges with clear leadership, DEXs have no central point of control.  This dispersion makes them almost impossible to monitor or restrict and 

any attempt to crack down faces difficulties.  Governments must first even identify all active DEXs across jurisdictions – in itself a herculean task given the ease of creating new ones.  Then they have to enforce bans on entities that by definition, cross borders and have no fixed address.  It's like playing whack-a-mole across the entire world wide web.

Even the Blockchain of Bitcoin is controlled, because the congestion that is happening right now is not an ordinary thing. From the way I am seeing things Bitcoin is no longer decentralized because of the ordinals. If Bitcoin Blockchain was alone then how come ordinals sneak into the system and make it congested. And because of the high transaction fee many people their fund or coins are now stuck in their wallets. And really the way the government is trying all means to control Bitcoin is getting obvious day by day and the developers of Bitcoin are not saying or doing anything to prevent that. Though the government is using allegations to be some of the Bitcoin clients.

Like mixer is client to Bitcoin and they have been banned from the Bitcoin forum which is wrong and now they are working on an altcoins forum which is not their Forum and promoting another forum for them. Well I don't think DEX can be banned by the government unless the ones that are not in the real DEX.

I don't think the imposition is always enforced, and with DEX it would be a joke if some side wanted to ban this , I don't think there is a convincing enough reason for the issue to be considered the original essence of the blockchain field - its decentralization.

But I can throw out some ideas about them banning it by arresting the DEX operators, and doing something to make it stop working. However, in this crypto space, we have a lot of decentralization, it's like someone picking a flower in a forest of flowers, so this problem is not scary, but more about crypto is increasingly accepted, supporting development in a harmonious way rather than in a negative direction.

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.

Governments are already on to the DEX too but it's not possible to use the word ban but they can try every possible way to make them stay away from the users and current DEXes are not completely decentralized since they have a single point of failure so they can be regulated, manipulated or banned too but in future if we tend to embrace the true DEXs then they can't ever be banned.

what they can do is turn the DEX into CEX so it can still operate and will be legal in the country where it resides. i agree though that governments are doing their thing to finally get a hold of those platforms and i think eventually they can control the crypto industry. DEX are full of data, they will make laws to drive DEX out. but not baan them.

DEXes are not immune to regulation and governments can easily take control of those DEX if they really will forcibly do it. 

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.

In past two months we have seen it all, be it hounding centralized exchanges or crackdown on mixers which has led to banning mixer campaigns in this forum from 1st January as a precautionary measure. But, when it comes to decentralized exchanges the government will have limited scope to target the DEX since they don't control it like they do for centralized exchanges with KYC and all. But if they start targeting people associated with DEX then I would say we might see the real decentralization wherein everyone should go anonymous like Satoshi Nakamoto.

IMO they cannot do much with DEX.

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.