Compliance Architecture

Definition ∞ Compliance architecture refers to the systematic framework of policies, procedures, and technological controls designed to ensure adherence to relevant laws and regulations. Within the digital asset sector, this architecture dictates how entities manage risks, prevent illicit activities, and meet reporting obligations. A robust compliance architecture is vital for operational integrity and regulatory acceptance.
Context ∞ The development and refinement of compliance architecture are ongoing imperatives for cryptocurrency firms. News often reports on regulatory scrutiny and enforcement actions that highlight deficiencies in existing structures. The increasing complexity of digital asset markets necessitates sophisticated and adaptable compliance frameworks to meet evolving legal standards.