Broker Requirements

Definition ∞ Broker requirements are the rules and standards that entities facilitating financial transactions must follow. These requirements often pertain to capital adequacy, operational integrity, client asset segregation, and anti-money laundering protocols. They are established by regulatory bodies to protect investors and ensure fair, orderly market operations. Adherence to these standards builds trust and stability within financial ecosystems.
Context ∞ In the digital asset space, broker requirements are a significant point of regulatory focus, as jurisdictions globally work to define appropriate oversight for crypto exchanges and trading platforms. News often reports on new or proposed regulations that seek to apply traditional financial broker standards to crypto brokers. The ongoing debate addresses how to balance innovation with investor protection and market integrity in this evolving asset class.