Definition ∞ Money Transmitting refers to the business activity of transferring funds on behalf of the public, typically involving physical cash, electronic transfers, or other forms of value. In the digital asset space, this includes services that facilitate the exchange of fiat currency for cryptocurrencies or the movement of digital assets between different parties. Entities engaged in this activity are often subject to stringent regulatory oversight, including licensing and anti-money laundering requirements. It is a highly regulated financial service.
Context ∞ News concerning money transmitting frequently addresses regulatory actions against crypto businesses that operate without proper licenses. The classification of digital asset services as money transmitters is a significant legal and compliance challenge for many companies. Debates often arise regarding the scope of these regulations and their applicability to decentralized protocols. Understanding the legal obligations associated with money transmitting is crucial for any entity handling digital assets on behalf of others.
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