Intermediary Status

Definition ∞ Intermediary status describes the legal and operational position of an entity that facilitates transactions or interactions between two or more parties. In finance, intermediaries typically include banks, brokers, or exchanges that connect buyers and sellers. Their status often dictates their regulatory obligations and liability.
Context ∞ The question of intermediary status is a significant debate in the digital asset space, particularly for decentralized finance (DeFi) protocols and self-custody solutions. Regulators are assessing whether certain decentralized applications or smart contract creators should be classified as financial intermediaries, thereby subjecting them to traditional regulatory requirements. This determination profoundly influences the future regulatory landscape for blockchain technology and its applications.