CEX vs DEX: Custody, Execution, and Due Diligence

Review and sources

Reviewed 2026-08-13 by CryptoLV Editorial. Next review: 2026-11-13.

• SEC Investor.gov: Exercise Caution with Crypto Asset Securities opens in a new tab

  Supports: Crypto platforms can lack investor protections; proof of reserves is not equivalent to an audit.

• CFTC: Understand the Risks of Virtual Currency Trading opens in a new tab

  Supports: Cash-market platforms can lack safeguards and leveraged products amplify risk.

• FinCEN: Convertible Virtual Currency Business Models opens in a new tab

  Supports: Virtual-currency business models can create regulatory obligations that depend on the activity and jurisdiction.

• FTC: What To Know About Cryptocurrency and Scams opens in a new tab

  Supports: Users should investigate a provider and avoid guaranteed-return claims before sending crypto.