A cryptocurrency brokerage is a financial service firm that facilitates the buying and selling of digital assets on behalf of its clients. These platforms typically offer direct access to various cryptocurrencies, providing liquidity and often managing custody of client funds. They serve as intermediaries, simplifying the process for individuals and institutions to acquire or dispose of digital currencies. Brokerages often distinguish themselves from exchanges by providing a more direct, simplified buying experience.
Context
The regulatory landscape for cryptocurrency brokerages is a significant and evolving topic in financial news. Jurisdictions globally are working to establish clear guidelines for these entities, covering aspects such as licensing, anti-money laundering compliance, and customer protection. Competition among brokerages is intense, with many expanding services to include staking, lending, and other decentralized finance offerings. News reports frequently cover new licenses granted, regulatory enforcement actions, and expansions of service by these firms.
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