Magazine

CEX

A cryptocurrency exchange that is owned and controlled by a single entity and runs as a business. The cryptocurrencies that CEX offers are entirely determined by its management.

Cryptocurrency exchanges can be split into two types based on where they are hosted and how they are run, the first of which is called a centralized exchange or a “CEX.” It is owned and controlled by a single entity and therefore, run like a traditional business. Because of this, CEXs are also not directly hosted on blockchains, but instead on their own servers in singular locations. Like all cryptocurrency exchanges, CEXs make certain cryptocurrency assets available for trading, which is called “listing” and is determined by the CEX’s management. Since a CEX has an identifiable headquarters, it is not censorship-resistant and can be shut down by the government where it is located at any time. Because of these facts, CEXs have been criticized by cryptocurrency users for not being dedicated to Satoshi Nakamoto’s vision.

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