r/0xProject • u/gayang3 • Oct 25 '17
One big pitfall for DEXs
In the current model of how DEXs are envisioned, they are these beautiful, unstoppable mechanisms where anyone can trade. And there won't be any KYC restrictions since, duh... these are decentralized exchanges.
But how confident are we that regulators will not place some sort a KYC requirement even on decentralized exchanges? Have this topic been thoroughly discussed before?
I mean, the whole point of KYC (or at least the stated main goal) is to prevent money laundering, terrorist funding, and other nefarious activities. If DEXs are suddenly going to become popular, and large amounts of value start going through them, do you think regulators/law makers will just say "oh it's a DEX so we should just let it be"? I think there is a real political/regulatory risk here that regulators will put in some sort of a KYC burden on DEXs.
Could they seriously enforce these requirements? They can definitely force the DEXs and the people who provide the protocol to play ball and setup KYC checkpoints.
As I said, maybe this has been already thoroughly discussed... if so please post some links.