The Indian cryptocurrency exchange WazirX has recently shown a huge improvement in volume.The exchange has reportedly become the largest decentralized exchange by volume. The popularity of the platform has made the creators think about the next step.
As per the latest reports, Nischal Shetty, the co-founder of WazirX, has revealed that WazirX is set to launch a decentralized exchange.
A centralized cryptocurrency exchange controls the operations of its customers. Unlike the centralized setup, a decentralized cryptocurrency exchange works without any custodian or intermediary. The trades take place on a self-executing basis, mostly through smart contracts. WazirX is testing the decentralized exchange features and other attributes to launch it next month.
Because decentralized exchange (DEX) doesn’t own data, even the regulators are unable to approach the exchange’s programmer and request data, said Shetty on data availability visible to everyone.
In June 2021, the Enforcement Director asked WazirX to explain the transaction that took place worth Rs. 2,790.74 crore under foreign exchange rules violations. The exchange is reportedly preparing the response that would probe money laundering.
Several industry and legal experts said that DEXs are less legally policed and provide more transparency. As a result, the chances of price manipulation and hacking are depleted substantially.
According to Mathew Chacko (a Spice Route Legal partner), decentralized exchanges encounter less policing from authorities. As a result, they are the trending mode for people who are looking for more transparent trades. He added that decentralized exchanges have fewer legal problems than centralized ones from a global legal point of view.
The decentralized exchanges don’t require any checklist like Know Your Customer (KYC). It is among the most feasible types of exchanges wherein global traders can easily trade without much of a hassle. All this has made decentralized exchanges popular worldwide.