Financial Intermediary Rules

Definition ∞ Financial Intermediary Rules are regulations governing institutions that facilitate financial transactions between parties, such as banks, brokers, and exchanges. These rules typically address capital requirements, operational standards, consumer protection, and anti-money laundering obligations. Their purpose is to maintain financial stability and ensure fair and transparent market conduct. Compliance is essential for these entities to operate legally.
Context ∞ The application of Financial Intermediary Rules to decentralized finance (DeFi) and other digital asset platforms presents a complex regulatory challenge. News often reports on debates regarding whether certain crypto protocols or service providers should be classified as financial intermediaries. Regulators worldwide are examining how to adapt existing rules or create new ones to address the unique characteristics of digital asset transactions and service providers.