The only bad aspect I see about CEX is that you have to do that shit KYC, no matter how you withdraw.
KYC is bad not because of the gov/ taxman, but because your data is in 3rd parties several hands and you don't know where will end up.

If you never sell back your BTC for fiat on those CEX, there's nothing to worry about gov / taxman. FUCK THEM.

I explained more details and aspects in several of my guides:
P2P exchanges are good for example when you want to:
  • not giving away your KYC data
  • want somebody else to pay your fiat bills and you pay them BTC
If I already KYC'ed at a service, does it matter if I continue using it?
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