Summary: Centralized Crypto Exchanges have intermediaries that function as banks for crypto trading.
Centralized Crypto Exchanges (CEX) have intermediaries that function as banks for crypto trading. The centralized exchange depicts a traditional cryptocurrency exchange in the crypto sphere. These exchanges are governed by a central authority offering both crypto-to-crypto and fiat-to-crypto trading. These platforms often function as reliable intermediaries for trades and act as custodians by managing and securing the funds. Generally, CEX platforms verify identity and ask for Know Your Customer(KYC) details, Anti-Money Laundering (AML), and Counter-Terrorism Financing (CFT) checks before the user begins trading.