Crypto-Fiat Bridge

Definition ∞ A crypto-fiat bridge facilitates the exchange between cryptocurrencies and traditional government-issued currencies. This mechanism permits users to convert digital assets into fiat money, like USD or EUR, and vice-versa. Such bridges are essential for liquidity and accessibility within the digital asset market. They often involve regulated financial institutions or exchange platforms.
Context ∞ The operational landscape for crypto-fiat bridges is heavily influenced by regulatory scrutiny concerning anti-money laundering and know-your-customer compliance. A key discussion point involves the varying levels of regulation across different jurisdictions, impacting how easily individuals and institutions can convert assets. Ongoing developments include the expansion of these services into new markets and the integration with traditional banking systems.