Definition ∞ Broker dealer services involve firms facilitating securities transactions for clients or trading for their own accounts. In the digital asset sphere, these services extend to crypto assets that may be classified as securities, necessitating compliance with regulatory frameworks. Firms acting as broker dealers provide order execution, custody, and advisory functions for various digital instruments. Their operations bridge traditional finance practices with the novel characteristics of blockchain-based markets.
Context ∞ The regulatory classification of digital assets as securities remains a central discussion, directly impacting the scope and requirement for broker dealer services in the crypto space. Clarity from global financial authorities is continuously sought, as existing regulations are adapted to accommodate new asset types. This evolving landscape shapes how digital asset broker dealers operate and influences market access for investors.