Cryptoasset Service Providers

Definition ∞ Cryptoasset service providers are entities that offer services related to digital assets, such as exchanges, custodians, wallet providers, and platforms facilitating initial coin offerings. These businesses act as intermediaries or infrastructure providers within the digital asset ecosystem. They enable users to buy, sell, store, or otherwise interact with cryptocurrencies and other blockchain-based assets. Their operations are increasingly subject to regulatory oversight.
Context ∞ The regulatory treatment of cryptoasset service providers is a central discussion point globally, with many jurisdictions implementing or proposing specific licensing and operational requirements. A critical debate concerns the scope of these regulations and how to apply traditional financial laws to decentralized models. Future developments include international cooperation to harmonize rules and the expansion of regulatory frameworks to cover a broader array of decentralized finance activities.