I've read that DEXs like Bisq doesn't require any compliance with any financial legislation due to the fact that it's a decentralised exchange. But do DEXs still need to meet AML/KYC requirements? If not, are users of DEXs required to perform the check?


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Well, first of all, you're asking a legal question, which I don't think really fits on this stack exchange.

But let me clarify maybe a few things.

First of all, everything will depend on your jurisdiction or the jurisdiction you're interested in.

But to be more precise, I think it depends on the type of DEX. Some people would call some centralized, but non-custodial, platforms also DEXes, like RoboSats or something. In the case of a central coordinator, it might be easier for a legislator to put some legal requirements on these coordinators.

Some DEXes are entirely decentralized though and are not "run" by anyone, but by a protocol. In that case, it's quite hard for a legislator to formalize legal requirements because there is no party to require them from.

However, you're right that it is possible that governments will try to put the burden of KYC etc. on the individuals. I personally don't know of any jurisdiction that works like that, though; Western so-called "democracies" generally protect transactions between individuals to a reasonable extent.

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