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These exchanges are mainly of two kinds: Centralized or Decentralized
In a centralized crypto exchange, most of the control over your account remains in the hands of the third party which runs the exchange. On the other hand, with a decentralized exchange, all the control of the account remains with you. This is another prominent reason why decentralized exchanges are becoming popular. But it’s also responsible for the enhanced complexity of such platforms.
It is easier to regulate centralized exchanges than decentralized ones. Centralized platforms require licenses and have to adhere to the rules of the local regulatory authority of their region. In contrast to centralized exchanges, decentralized ones don’t have regulation because it’s highly challenging to do so thanks to their distributed blockchain. This means if a government bans crypto exchanges, decentralized ones can still operate in those regions.
