Financial Services Act

Definition ∞ A Financial Services Act is a legislative framework that governs the provision of financial services within a specific jurisdiction. These acts define the scope of regulated activities, establish licensing requirements for financial institutions, and set standards for consumer protection and market conduct. They are designed to ensure the stability and integrity of the financial system. Compliance with such legislation is mandatory for entities operating within the financial sector.
Context ∞ The application of Financial Services Acts to digital assets and fintech operations is a subject of intense regulatory debate and legislative development globally. Discussions often focus on how existing frameworks can be adapted or if new legislation is required to address the unique characteristics of cryptocurrencies and decentralized finance. Jurisdictions are actively seeking to balance innovation with robust oversight to mitigate risks and foster market confidence.