Dealing as agent describes a financial service provider executing transactions on behalf of a client without taking a principal position in the asset. The agent acts solely as an intermediary, facilitating the trade between two parties. This arrangement typically involves earning a commission or fee for the service provided. It contrasts with dealing as principal, where the firm trades from its own inventory.
Context
The distinction between dealing as agent and dealing as principal holds considerable weight in regulatory discussions concerning digital asset service providers. Regulators scrutinize these operational models to determine appropriate licensing and oversight requirements, particularly regarding market conduct and client asset protection. Future regulatory clarity will likely delineate specific obligations for agents operating within the digital asset sector.
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