One potential driver for DEX volumes in the near term is an increase in regulation, the note said. As crypto regulation develops more broadly, with expanded reporting requirements, users could begin to migrate to DEXs from “KYC heavy CEXs,” it said, referring to “know-your-customer” requirements. The regulatory landscape is expected to become more “onerous,” and more users are likely to switch to decentralized exchanges from centralized ones, the note added.
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