Digital Asset Compliance Framework

Definition ∞ A digital asset compliance framework comprises the set of rules, policies, and technological systems designed to ensure adherence to legal and regulatory requirements within the digital asset space. This includes anti-money laundering (AML), know-your-customer (KYC), and sanctions screening procedures. Such frameworks are critical for preventing illicit activities and integrating digital assets into regulated financial systems. They provide a structured approach for entities operating with cryptocurrencies and other digital tokens.
Context ∞ The ongoing development and adaptation of digital asset compliance frameworks constitute a primary concern for both regulators and industry participants globally. Jurisdictions are continuously refining their approaches to supervision, leading to a complex and evolving regulatory landscape. Key discussions involve achieving a balance between innovation and consumer protection, with future news often reporting on new legislative proposals and international standards for digital asset oversight.