Compliance Infrastructure Overhaul

Definition ∞ A compliance infrastructure overhaul involves a comprehensive restructuring of systems and processes to meet regulatory requirements. For digital asset firms, this entails upgrading technology, updating internal policies, and retraining personnel to adhere to evolving anti-money laundering, know-your-customer, and data privacy standards. The objective is to mitigate regulatory risks and avoid penalties by establishing robust controls. Such an overhaul typically addresses gaps in existing compliance frameworks.
Context ∞ News reports often detail compliance infrastructure overhauls as cryptocurrency companies adapt to increasing regulatory scrutiny worldwide. These initiatives are frequently driven by new legislation or enforcement actions from financial authorities. The success of such an overhaul is critical for companies seeking to maintain operational licenses and expand into new markets.