Part 8/12:
This regulatory shift poses a dilemma for retail users: continue using centralized exchanges with extensive compliance burdens or pivot toward decentralized exchanges (DEXes). Historically, centralized venues have been the primary interface for retail trading, but with increased monitoring, users might migrate toward self-custody solutions and DEX platforms.
CoinGecko data indicates a rising trend—DeFi trading volume relative to centralized exchanges has increased from around 6% in January 2021 to over 37% in mid-2025. While DEXs may not replace centralized venues entirely, they are poised to gain market share, especially if they prioritize privacy and user control.