Long term they're toast if Defi succeeds.
Their only place would be as fiat onramps, and that means they should be pushing for harsher KYC laws, because increasing the cost of business is the usual strategy of incumbents.
Their only place would be as fiat onramps, and that means they should be pushing for harsher KYC laws, because increasing the cost of business is the usual strategy of incumbents.
Agreed.
> Their only place would be as fiat onramps, and that means they should be pushing for harsher KYC laws, because increasing the cost of business is the usual strategy of incumbents.
I think this is a short/medium term perspective. Long term, crypto expands the existing eurodollar system (decentralized permissioned [via global banks] ledger money -> decentralized permissionless ledger money) and defi has a multitude of on chain credit origination (aka. not reliant upon off chain stablecoin flows/fiat) while friendly jurisdiction have some kind of fiat on/off ramp (and even deeper cash on/off ramps via cryto atms or "localbitcoin"-like markets). People much more researched than I on the inner workings of the eurodollar system think so as well [0]. Even now, I've seen workers for CEX's engage with DAO's of tokens that they've listed (so some CEX's are investing in their eventual demise, on top of being validators/miners of different chains).
[0] https://alhambrapartners.com/2022/03/22/the-monetary-answer-...
Only if the action doesn't move to defi; if it does, the main advantage of centralized exchanges (being able to double as market makers) vanishes.
> Their utility for speculation decreases with harsher KYC/AML/accredited investor regulation, so it doesn't make sense for them to support that.
Notice how I only cited the first one (one time costs per customer) and not the other 2 :)