Bitcoin’s high price of US$ 15.9K, nearing US$ 16K, had stolen the show from the DeFi securities. Even the decentralized exchanges could not keep up with the rally of legendary Bitcoin. But one cannot ignore the possibility of decentralized exchanges’ turning the tables around in the future ahead.
Since the last three months, Bitcoin is on a rally wherein many records have been broken by it. For instance, it had been recently recorded that for over 100 days, Bitcoin managed to stay over US$ 10,500. It had now gone back in the year 2016 where its price was the same as of today.
People thought that the US President’s pre-election trauma will send Bitcoin low but it turned out to the contrary. Similarly, due to this rally, Bitcoin investors regained their confidence. In addition, there had been a huge surge in the numbers of individual investors as well as institutional investors. All these factors are indicating a long-lasting rally for Bitcoin.
But is it enough for Bitcoin to take a lead over decentralized exchanges, is an important question? The experts and analysts are of the view that the answer is no. They said that ensuring the mass adoption of cryptocurrency will require letting go of privacy and centralization.
The international policies such as KYC and AML have bound crypto exchanges to obtain more information from its users. However, the majority of them had refused to do so. Consequently, they are offered limited scope services by the exchanges or at worst allowed to leave the exchange.
Similarly, cross-border operations had been difficult ones for decentralized exchanges. There are regional changes in laws, rules, regulations, and policies which depend upon regions to regions. In some parts, AML policy is not mandatory and in some it is. In addition, regulatory frameworks drawn by different regulators had been another major hurdle in the mass adoption of crypto.
For example, the US SEC, CFTC as well as its Department of Justice, have all been too strict for decentralized exchanges. World’s biggest exchanges such as OKEx as well as BitMEX have also not been the lucky ones. Recently, DOJ had ordered the arrest of BitMEX’s co-founder and even imposed heavy fines upon OKEx.
It is said that in such harsh conditions, the mass adoption of crypto is not possible. As per CoinDesk’s, the mass adoption of crypto is possible only if the exchanges are allowed financial self-sovereignty.