Exchange Operational Controls

Definition ∞ Exchange operational controls are the internal policies, procedures, and systems implemented by cryptocurrency exchanges to ensure the secure, efficient, and compliant functioning of their trading platforms. These controls cover aspects such as asset custody, trade execution, cybersecurity measures, and regulatory adherence. They are vital for protecting user funds and maintaining market integrity.
Context ∞ The discussion around exchange operational controls is consistently prominent in crypto news, especially following security breaches or regulatory actions. Regulators worldwide are increasing their scrutiny of these controls to mitigate risks for investors and prevent illicit activities. Future developments will likely involve advanced security protocols, robust audit mechanisms, and clearer regulatory guidelines for exchanges.