The exodus of Poloniex, whose US operations are now winding down, is the latest in a long line of centralized exchanges to have bowed out citing regulatory pressure.
Every cloud has its silver lining no matter how slender, and the sunsetting of US CEXs has provided an opportunity for DEXs to gain market share.
With Poloniex on its way out of North America and Bittrex a shadow of its former self, US residents aren't left with many trading venues where they can freely operate.
Coinbase is more of a broker than an exchange, Kraken is still Kraken: ideologically as true to Bitcoin as ever, but suffering from low liquidity and unable to innovate due to restrictive US legislation.
US has the trading volumes, but not the coins, since each asset it lists must be carefully vetted to ensure it's not a security and is "Sufficiently decentralized."
US traders seeking exposure to the full gamut of crypto assets are now left with two options: fire up the VPN to access an overseas CEX and hope they don't get caught, or investigate the world of DEXs instead. From a legal perspective, decentralized exchanges are bound by the same laws as their centralized counterparts in the US, unless, that is, the DEX is "Sufficiently decentralized" so as to have no formal company structure.
Not centralized exchange deep, admittedly, but better than any other DEXs out there.
Bancor and Uniswap aren't the only Ethereum DEXs out there; in fact, there are numerous decentralized exchanges that offer a trading experience not too dissimilar to that of centralized platforms.
It would be hopelessly optimistic to think that DEXs will simply soak up the US trading demand left by departing CEXs, and that business will go on as usual, but in a non-custodial fashion, beyond the reach of regulators.
If nothing else DEXs are capable of serving as exchanges of last resort: a lifeline for US traders to fall back on, providing surety of access to an array of crypto assets.
As leading US exchanges bow out due to regulatory pressure, DEXs step into the breach
Publicado en Oct 30, 2019
by Cryptoslate | Publicado en Coinage
Coinage
Mencionado en este artÃculo
Noticias recientes
Ver todo
Another mainstream company is seeking approval to invest in crypto
Anthony Scaramucci's investment firm, SkyBridge, seeks approval from the SEC to invest in crypto.
COVID-19 popularized decentralization, but blockchain may not catch on
On Nov. 9, drugmaker Pfizer announced that its COVID-19 vaccine is 90-plus percent effective, and even though it may be premature to proclaim the pandemic's end - as the virus continues to rage in the United States and Europe - once can at least speculate: Where will blockchain adoption stand when the crisis abates?
Bitcoin hits new 2020 high at $16.7K -Traders expect bigger breakout
The price of Bitcoin hit a new yearly high at $16,717 on Binance.
The next big crypto market could be fantasy sports, says Messari
As "Digitally native" ecosystems like esports continue to synergize with blockchain technology, industries like fantasy sports could be primed for mass adoption, says digital research firm Messari.