Definition ∞ Centralized exchange compliance refers to the adherence of cryptocurrency exchanges to regulatory requirements imposed by governmental and financial authorities. These requirements typically include anti-money laundering (AML), know-your-customer (KYC), and sanctions screening protocols. Effective compliance is crucial for centralized exchanges to operate legally and maintain trust with both users and regulators. It helps mitigate illicit financial activities within the digital asset ecosystem.
Context ∞ Centralized exchange compliance remains a critical and dynamic area within the digital assets market. Regulators are continually refining their expectations, leading to ongoing adjustments in operational procedures for exchanges. The ongoing challenge involves balancing robust regulatory adherence with user experience and market competitiveness.
Blockchain Knowledge
Cryptocurrency Foundation
Cryptospace Newsfeed
