Large centralized exchanges (CEX) are one of the most law-abiding players in the market. They typically comply with the recommendations of the Financial Action Task Force (FATF), an intergovernmental organization aimed at combating money laundering, terrorist financing, and other threats. They also use special analytical tools to check the purity of cryptocurrency at the entry stage, which makes it unlikely that “dirty” assets will be received on such platforms.
However, the risk arises if the exchange is subject to sanctions, from which all associated funds can be marked as sanctioned.
In contrast, decentralized services (DEX) can operate without licenses, in a gray area, and do not adhere to anti-money laundering (AML) requirements, which increases the likelihood of receiving “dirty” cryptocurrency.
so decentralized exchanges give freedom but the big centralized ones have more of the coins we can trust is not dirty? Is there going to be AI to monitor this so dirty coins are detected automatically