Compliance Governance

Definition ∞ Compliance governance refers to the framework of rules, processes, and controls an organization establishes to ensure adherence to relevant laws, regulations, and internal policies. In the digital asset space, this involves implementing measures to prevent illicit activities, protect consumers, and maintain market integrity. It provides the operational structure for meeting legal obligations and ethical standards. Effective governance reduces legal and reputational risks for entities handling cryptocurrencies.
Context ∞ The digital asset industry faces a complex and rapidly changing compliance governance landscape, with regulators worldwide working to establish clear guidelines. A central discussion involves adapting traditional financial compliance frameworks, such as Anti-Money Laundering and Know Your Customer, to the pseudonymous and decentralized nature of blockchain technology. Future developments will likely involve harmonized international standards and sophisticated technological solutions to automate and streamline compliance efforts.