Intermediary Regulation

Definition ∞ Intermediary regulation pertains to rules and oversight applied to entities that facilitate transactions or services within a market, acting between end-users. In the digital asset space, this includes cryptocurrency exchanges, custodians, and certain decentralized finance (DeFi) platforms that operate with a degree of centralization. These regulations aim to ensure market integrity, consumer protection, and compliance with anti-money laundering standards. It seeks to mitigate risks associated with centralized points of control.
Context ∞ The scope of intermediary regulation in the digital asset sector is a significant area of focus for global policymakers. A key discussion involves determining which entities qualify as intermediaries and how existing financial regulations should apply to them. Future legislative efforts are expected to clarify regulatory boundaries and impose more stringent requirements on these service providers, influencing the structure of the digital asset ecosystem.