Definition ∞ A digital asset middleman is an intermediary that facilitates transactions or services involving cryptocurrencies and other digital assets. These entities often provide services such as exchanges, custody, or lending. They bridge the gap between users and underlying blockchain networks. Examples include centralized crypto exchanges or digital asset custodians.
Context ∞ The regulatory discussion surrounding digital asset middlemen focuses on applying existing financial regulations to these entities. Authorities seek to impose rules related to anti-money laundering, know-your-customer procedures, and investor protection. News often reports on legislative efforts to define and oversee the operations of these intermediaries, aiming to mitigate risks within the digital asset market.
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