How Does the Regulatory Environment Differ for CEX and DEX?

Centralized Exchanges (CEXs) are generally subject to more traditional financial regulations, including KYC/AML, licensing, and compliance with local securities and derivatives laws. Decentralized Exchanges (DEXs) currently operate in a more ambiguous regulatory gray area, though regulators are increasingly scrutinizing the protocols, especially those with centralized governance or specific token structures.

What Regulatory Differences Exist for Custodial and Non-Custodial Derivatives Exchanges?
How Does the Lack of Know Your Customer (KYC) Requirements on a DEX Facilitate Scams?
What Is the Distinction between KYC and AML in Financial Regulation?
How Do the Regulatory Requirements Differ between Perpetual and Traditional Crypto Futures?
How Do KYC and AML Regulations for Crypto Vary across Different Jurisdictions?
Do Stablecoins Used for Options Trading Face Different Regulatory Scrutiny than Those for Spot Trading?
How Does the Regulatory Environment Differ for Custodial CEXs versus Non-Custodial RFQ Platforms?
What Is the Regulatory Challenge of Enforcing KYC/AML within a Decentralized Derivatives Exchange (DEX)?

Glossar