Definition
A centralized exchange is a trading venue operated by an organization that controls account access, order matching, custody arrangements, or settlement processes.
In market context
Customers commonly deposit assets or money with the operator and trade through balances recorded in its internal systems. This can offer familiar account recovery and order-book services, but it also creates operational, custody, cybersecurity, liquidity, and counterparty dependencies on the operator. Legal status and customer protections differ by jurisdiction, and a venue calling itself an exchange does not establish that it is regulated like a securities exchange.
Risk context
Assets held with an operator may become inaccessible if it is hacked, insolvent, frozen, or unable to process withdrawals.
Source
Use the primary source for fuller regulatory or market context.