Institutions hesitant on Perp DEXs due to security, KYC concerns

Crypto industry insiders at the 2026 Consensus Miami conference noted that institutional investor participation in decentralized perpetual futures exchanges (Perp DEXs) remains limited, citing DeFi security risks and conflicts with Know Your Customer (KYC) frameworks, CoinDesk reported. Michael Anderson, co-founder of crypto venture capital firm Framework Ventures, described the current DeFi ecosystem as a "minefield." He explained that Perp DEXs are difficult for institutions to use compared to centralized exchanges (CEX) because DeFi's focus on anonymity and non-KYC structures clashes with the strict regulatory and compliance requirements that institutions must follow.