Binance KYC Dump Proves We Need Decentralized Liquidity,Storage,Exchange,Etc (Reddit Bitcoin)
The issue with DEX is they are never truly DEX. You have all these other things that can be hacked, prime point with Binance. Not only are we being hyper targeted by governments, we are by criminals.
The blunt matter is we need to make anti KYC DEX the norm. There may be and there surely will be ways to created blockchain based theft resistant KYC, but it shouldn't be forced onto the disenfrenchised and average citizen. It comes with the added risk of bad actors. Such things are more appropriate for large businesses and agencies and such.
Assumed anti KYC DEX that are totally unsiezable and totally distributed should become the norm for small players. Layer 2 lightning solutions will provide many of the advanced features, virtual machines more of the additional features as well, the technology is basically here.
Custodian ship in the crypto world is tantamount to constant financial extortion. It isn't very germane to bitcoin. Living in fear of governments, scam exchanges, exit scams, hackers, phishing, breaches, etc just gets old. It gets real old. Really, really, really old.
We shouldn't even trust exchange policies. Why have their policy, when the behavior of the exchange can be dictated by smart contracts, VM, and other consensus on layer 2. That will put an end to crap like Bitmex and countless other 'clawbacks' and all else under the sun of excuses.