Definition ∞ Crypto capital requirements are the mandatory minimum amounts of capital that financial institutions or crypto service providers must hold. These requirements serve as a buffer against potential losses and ensure solvency. They are designed to protect customers and maintain financial stability within the digital asset ecosystem.
Context ∞ Crypto capital requirements are a key regulatory discussion point globally, particularly as traditional banks increase their exposure to digital assets. Legislators and financial bodies are working to establish appropriate capital adequacy rules that account for the unique volatility and operational risks of cryptocurrencies. Future regulations will likely standardize these requirements across various digital asset service providers.
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