MLR Registration

Definition ∞ MLR registration refers to the mandatory registration of certain businesses under Money Laundering Regulations. This regulatory requirement applies to businesses deemed at risk of being exploited for money laundering or terrorist financing, including many digital asset service providers. Registration necessitates adherence to specific anti-money laundering AML and counter-terrorist financing CTF obligations, such as conducting customer due diligence and reporting suspicious activities. It serves as a critical measure in combating financial crime within the broader financial system.
Context ∞ For digital asset firms, MLR registration is a significant compliance hurdle, often highlighted in crypto news as regulators seek to bring the sector in line with traditional finance. Discussions frequently address the scope of businesses requiring registration and the challenges of applying traditional AML frameworks to pseudonymous or decentralized transactions. The increasing enforcement of these regulations signals a maturing regulatory approach to digital assets.