Exchange Compliance

Definition ∞ This describes the adherence of cryptocurrency exchanges to legal and regulatory requirements. It involves implementing measures such as Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures to prevent illicit activities. Compliance ensures exchanges operate within established legal frameworks and maintain user trust.
Context ∞ Current discourse on exchange compliance often highlights the increasing scrutiny from global regulators and the varied approaches to oversight across different jurisdictions. Debates are ongoing regarding the balance between regulatory requirements and the principles of decentralization and user privacy. Key future developments to watch include the potential for harmonized international regulations and the impact of compliance on exchange operations and user access.