Definition ∞ Crypto-fiat exchanges are platforms that enable users to trade cryptocurrencies directly for traditional government-issued currencies, such as USD or EUR. These exchanges serve as critical gateways between the conventional financial system and the digital asset market. They facilitate both the entry and exit points for investors. Compliance with financial regulations is a significant aspect of their operation.
Context ∞ Crypto-fiat exchanges are central to the liquidity and accessibility of the broader digital asset market. News frequently covers their regulatory compliance efforts, security enhancements, and expansions into new jurisdictions. The ease with which users can convert between crypto and fiat currencies directly impacts market participation. Debates often focus on the regulatory classification and oversight of these platforms.