Compliance Standards

Definition ∞ These are established rules, guidelines, or specifications that entities must adhere to for lawful operation. Within the digital asset sphere, compliance standards dictate how cryptocurrencies, exchanges, and related services must function to meet legal and regulatory requirements. Adherence ensures legitimacy and fosters trust among participants and authorities.
Context ∞ The current discourse around compliance standards is intensely focused on the evolving regulatory landscape for digital assets globally. Jurisdictions are actively defining and refining frameworks for Anti-Money Laundering (AML) and Know Your Customer (KYC) procedures, impacting exchanges and token issuers. The anticipation of new directives or the enforcement of existing ones significantly shapes market sentiment and the operational strategies of crypto-native businesses.