Largest Cryptocurrency Exchange; WazirX prepared to launch decentralised exchange

WazirX which is the largest cryptocurrency exchange by volume too is about to launch decentralised exchange of its own as mentioned by Co-founder Nischal Shetty. The role of an decentralised exchange is to operate without any intermediary organisation so as to clear transactions. Where on smart contracts, trades are being executed. The co-founders of WazirX are so interested in building such a exchange as it would be like peer to peer crypto trading.
But before launching, ‘The decentralised exchange’ is being tested to be launched next month. It’s is undergoing tests as such an exchange is not having its own data and the authorities also are unable to ask the developer of exchange that they require data.

Enforcement Directorate and WazirX

ED in June had issued show cause notice to WazirX for asking the exchange for explaining the transactions worth Rs. 2,790.74 crore on violating the foreign exchange rule. The exchange will readily prepare response to federal agency which is into screening of money laundering. Various industry experts were of the view that decentralised exchanges are legal and are much transparent for controlling crypto holders. Even hacking probability also reduces along with price manipulation.

Advantage of Decentralised Exchange

First advantage is that no one is going to control your crypto. Secondly it is way too legal and thirdly, they provide much of transparency and control to its users. But mostly, it is difficult for the regulators to pause decentralised exchanges as they are owned by communities and not by smaller group of people.
Another important feature of decentralised exchange is that it could be used by anybody around the globe and would not require user for any sort of identification check as ‘know your customer’ to be one such check. Generally the investors are interested in conducting peer to peer transactions and so hold crypto in their private wallets.

Types Of Decentralised Exchanges

There are various sorts of decentralised exchanges round the globe as for instance, MDEX, Uniswap, Sushiswap as per to the crypto tracking website ‘coinmarketcap.com’.At present no laws are governing Cryptocurrency, in addition to both centralised and decentralised exchanges. As discussed in previous articles as well, that they are not regulated and so can’t be governed but could be bought-sold and traded by anyone. Uptill now there is no such hint on when Cryptocurrency and Regulation of Official Digital Currency Bill 2021 would be tabled. This Bill presently is for criminalising trading and holding of assets of cryptocurrency. The bill also defines cryptocurrencies and its uses appropriately and the types of digital currencies involved.

Conclusion
Decentralised exchange would be much beneficial for the investors then centralised one as it would be more transparent in terms of transactions, also it will be legal for controlling crypto holders and investors would also be at lesser risk of hacking. Therefore, decentralised exchange would be beneficial for WazirX.