Centralized exchange (CEX)

A Centralized exchange (CEX) is a digital currency exchange that is operated by a single organization or individual. It is a type of cryptocurrency exchange that functions as a mediator between buyers and sellers, holding user's assets and currencies. CEX is essential to provide an environment in which traders and investors can swap their cryptocurrencies with each other. By providing a platform to consolidate buyers and sellers, CEX offers its users with an easy-to-use, regulated trading environment that offers high liquidity, fast transaction times, and security. CEX often requires users to submit personal information, KYC, AML, and a typical verification process to comply with various financial regulations, such as Anti-Money Laundering (AML) and Know Your Customer (KYC). Some of the most popular examples of centralized exchanges include Binance, Coinbase, and Kraken.