Definition ∞ Information sharing refers to the exchange of data and intelligence among different entities, such as financial institutions, regulatory bodies, or law enforcement agencies. This process is typically undertaken to enhance security, detect fraudulent activities, or ensure compliance with legal and regulatory obligations. Effective information sharing relies on secure channels and agreed-upon protocols.
Context ∞ In the digital asset space, information sharing is a critical topic concerning anti-money laundering and counter-terrorist financing efforts. News often highlights initiatives by regulators to compel virtual asset service providers to share transaction data to combat illicit activities. The balance between user privacy, a core tenet of many digital assets, and the need for regulatory information sharing remains a significant ongoing debate.
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