Crypto Exchange Oversight

Definition ∞ Crypto exchange oversight refers to the regulatory and supervisory activities applied to digital asset trading platforms. These measures aim to ensure market integrity, protect consumers, and prevent illicit financial activities. Such supervision involves adherence to anti-money laundering and know-your-customer regulations, alongside operational security standards. It establishes accountability within the digital asset trading environment.
Context ∞ The current state of crypto exchange oversight involves varied approaches across jurisdictions, leading to regulatory arbitrage concerns. Key debates address the scope of authority for traditional financial regulators over novel digital asset structures. Future trends suggest a movement towards more standardized global regulatory frameworks to address market risks effectively.