"Another item the plan calls for is scrupulous consideration of all transactions between EU members and states known to be good spots for money-laundering."

 

the euro government are only going after FIAT exchanges.. its not a direct attack of bitcoin. but a FIAT compliance attack, that as a side affect touches bitcoin due to exchanges that also trade bitcoin.

the problem is that trying to make the fiat side of trading automated/fast/trusted, cannot be done that easily in a decentralised manner without losing the whole "day trading" advantage.

if you can put aside the day trading feature and just concentrate on the exchange broker feature, such as local bitcoins #bitcoin-otc. this can become more decentralized so that there isnt even a website/chatroom to gather brokers together. its possible but more cumbersome to find reputable brokers in seconds.

the community should concentrate more on making bitcoin more viable to not require "cashing out" back to fiat. that way the community wouldnt need to worry about handing over ID everytime they want to buy something, as they can do it via bitcoin direct.

im not so worried about exchanges such as coinbase and bitstamp becoming ID heavy, because they are very FIAT heavy so its logical to assume that they would require regulation. we may not like it, but when playing with their devil money we need to follow their rules.

my concern is things like bitpay needing peoples life story, which are subtly handling fiat in the background but it never touches the buyers hand.  or purse.io which is less subtle, as the fiat is in the giftcards.. but would still cause headaches for anyone just wanting to spend small amounts (similar to handling bank notes that laughably dont require ID to hold)

Other than the topic I referenced the CIYAM project itself is on github (https://github.com/ciyam/ciyam).

Currently work on a "memory-hard" proof algo is underway before being able to offer CIYAM as a decentralised application platform (which is what the project has been heading towards for the last year).

Also I have already created an ACCT Bitcoin script (based upon TierNolan's idea) using CLTV which others are free to use (currently the raw txs need to be created using CIYAM but it wouldn't be so hard to write a stand-alone tool for doing that).

How do decentralized exchanges handle fiat again?

localbitcoins.com proves it is possible to make quasi decentralised websites. but i think you are more on the mindset of daytrader exchanges, rather than broker exchanges

Well I can only recall localbitcoins, but trust becomes an issue with decentralized exchange too. Like in cases where we have to meet up personally and exchange. But yeah, apart from that It makes me realize that localbitcoins has made it possible for me to purchase Bitcoins without having to furnish KYC/KML documents.

Unless people open their minds and understand that Bitcoin is all about "Decentralization" and they stop using Centralized exchanges ... we are not going anywhere .
If users stop using exchanges they will have to stop their services or transform into Decentralized systems wither they like it or not .

your forgetting ripple that allowed exchanging on ripple. and when finally ready to cash out you would use things like bitstamp/kraken

but again localbitcoins/ripple are not perfect. localbitcoins is a little bit better at the trust, but still not perfect solutions to the FIAT swap decentralized idea

A decentralize exchange linked to Fiat is simply impossible... Who will be holding the fiat? I would want someone to explain to me how this could be possible.

I have been saying for a long time... All these 3rd party services {middle men} are not beneficial to Bitcoin, because they are the weak points. The centralized

3rd parties can be targeted to stop decentralized Crypto currencies. We will need to find a solution for that, or we will lose the war against regulations that are

aimed to stop certain Crypto currencies.