CEX

Centralised crypto exchanges

A CEX — Centralized Exchange — is a cryptocurrency trading platform operated by an identifiable company that holds customer funds, runs order books and enforces KYC/AML processes. The model maps closely onto a traditional securities exchange or online broker — transposed to crypto assets.

The largest global CEX in mid-2026 are Binance (by some distance the biggest trading volume worldwide, though with restrictions in several jurisdictions following the 2023 US DOJ settlement), Coinbase (Nasdaq-listed, US-focused), Kraken, OKX and Bybit. The DACH leader is Bitpanda, headquartered in Vienna — one of the few fully MiCA-licensed providers based in Austria.

How it works and custody

On a CEX the user typically buys crypto assets via SEPA transfer, credit card or instant payment. The coins acquired are by default held in a platform-controlled wallet — the user therefore does not hold their own private keys ("not your keys, not your coins"). The trade-off is avoiding the technical complexity of DEX wallets, internal-transfer gas fees and the risk of self-inflicted operational errors.

The business model is funded by trading fees (typically 0.1% to 1.5% per trade), spread margins, withdrawal fees and, in many cases, premium services such as staking or lending products.

Regulatory requirements since MiCA

Since 30 December 2024 every CEX operating in the EU must be authorised as a CASP under the MiCA Regulation. The main duties cover:

• Capital requirements: €50,000 to €150,000 depending on services offered
• Segregation of own and client assets: client crypto assets cannot be used for proprietary activity
• Complaints handling and risk disclosures
• Travel Rule for crypto transfers above €1,000
• MiCA whitepaper for every token listed (except Bitcoin and Ethereum, classified as decentralised)

In Austria the FMA is the competent authority. Bitpanda was among the first firms to receive a MiCA licence from the FMA in the first quarter of 2025. In Germany BaFin supervises CASPs active in Germany.

Historical platform risk

Crypto history is studded with CEX collapses: Mt. Gox in 2014 (650,000 BTC lost), QuadrigaCX in 2019 (USD 190 million), FTX in November 2022 (over USD 8 billion of client funds gone) and several smaller cases. These episodes have hard-wired the maxim "not your keys, not your coins" into the culture and are a major driver of the rise of hardware wallets and cold storage solutions.

MiCA aims to prevent comparable events in the EU structurally through its strict custody rules — but a definitive stress test is still pending.

Tax treatment in Austria

At Austrian CEX such as Bitpanda the 27.5% KESt on crypto gains is withheld automatically — analogous to the treatment of securities accounts. On foreign platforms (Kraken, Binance, Coinbase) self-declaration on the E1kv tax form is mandatory.

What investors often ask

How does a CEX differ from a neobroker like Trade Republic? Trade Republic only intermediates the trade and relies on specialised CASPs in the background — a CEX is both intermediary and custodian.