One potential driver for DEX volumes within the close to time period is a rise in regulation, the notice mentioned. As crypto regulation develops extra broadly, with expanded reporting necessities, customers may start emigrate to DEXs from “KYC heavy CEXs,” it mentioned, referring to “know-your-customer” necessities. The regulatory panorama is anticipated to develop into extra “onerous,” and extra customers are more likely to swap to decentralized exchanges from centralized ones, the notice added.
