DASP Regulation

Definition ∞ DASP Regulation refers to the rules governing Digital Asset Service Providers, which are entities that offer services related to digital assets, such as exchanges, custodians, and wallet providers. These regulations aim to establish legal and operational frameworks to ensure consumer protection, financial stability, and anti-money laundering compliance. They typically impose requirements for licensing, capital adequacy, and operational security on firms handling cryptocurrencies and other digital assets. The goal is to integrate digital asset activities into broader financial regulatory structures.
Context ∞ The state of DASP Regulation is currently dynamic, with various jurisdictions implementing distinct approaches to supervise digital asset businesses. A significant discussion involves the scope of services that fall under DASP classification and the extraterritorial application of these rules. A critical future development will be the ongoing refinement of these regulations to address new innovations in the digital asset space and to foster greater international cooperation among regulatory bodies.