Today, bitcoin wouldn't be able to attract and manage current number of users, traders and investors without the help of CEX, but simultaneously, CEX is the damaging the core basis and idea of bitcoin. Bitcoin and CEX look like a symbiote where one makes another stronger and capable to do more while slowly kills and abandons it during the process.
Government are going to strengthen the regulation of centralise and there will be more transparency from the exchange to their customers, especially with regards to custody of customers assets and proof of reserves .
Since it's inevitable to expect the expand of bitcoin and crypto usage and since it's foolish to ban it, they have found a solution and it's called
regulation. Some may found it good when the government is involved and may feel extra secure while some may feel alert because prefers to stay anonymous and don't wanna become the part of their collective statistics.
After the whole issues of FTX my advice is though buying from CEX is safer but storing all your funds there should be avoided and for holders just stick with DEX.
Every company wants to look safe when you are spending money on their platform. It becomes the problem when your money is stored in their wallets.