Definition ∞ De-risking refers to actions taken to reduce or mitigate exposure to financial, operational, or regulatory hazards. This process involves identifying potential threats and implementing strategies to lessen their impact. In digital asset markets, it often means minimizing volatility, counterparty exposure, or regulatory uncertainty. Such measures aim to protect capital and maintain stability.
Context ∞ The concept of de-risking is prominent in traditional financial institutions interacting with the cryptocurrency sector, often due to concerns about money laundering and compliance. Regulatory bodies frequently pressure banks to sever ties with crypto businesses, limiting access to financial services. Ongoing efforts seek to establish clear regulatory guidelines to allow for more predictable and compliant participation in digital asset markets.
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