CeFi / crypto exchange
CeFi refers to centralised providers such as crypto exchanges that operate trading and custody as companies, in contrast to DeFi programs.
Explained simply
A crypto exchange works like an online broker: you open an account, verify your identity, deposit money and trade. The exchange holds your coins and keeps the books internally.
That is convenient and familiar. The price is trust: your coins sit with the provider. If it goes bankrupt or gets hacked, you are a creditor.
In the EU such providers have needed a licence since MiCA and must hold client assets separately. That has significantly improved protection.
From the familiar world
Your online broker or custodian bank: you trust the company, and the regulator sets the rules. DeFi, by contrast, would be the vending machine with no company behind it.
An example
The collapse of a major crypto exchange in 2022 cost clients billions because client funds were not held separately. That is exactly what EU regulation has required since.
Why it matters
Most retail investors use CeFi, not DeFi. "Is the provider licensed?" and "Are my assets held separately?" are the two most important questions an adviser should ask.
To pass on
„CeFi is the online broker for crypto: convenient, but you trust the provider. That is why the licence matters.“
The content of this wiki is for general information and educational purposes only. It does not constitute investment advice, an investment recommendation or tax or legal advice. Digital assets are subject to strong price fluctuations and can lead to losses up to a total loss. Content as of 2026, no guarantee of completeness or timeliness.
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