Normal Supervision

Definition ∞ Normal supervision refers to the routine oversight and monitoring activities conducted by regulatory authorities or internal compliance departments. This involves regular assessments to ensure adherence to established laws, regulations, and internal policies. It represents the standard level of scrutiny applied to regulated entities, maintaining operational integrity.
Context ∞ As digital asset service providers increasingly fall under regulatory purview, the concept of normal supervision becomes relevant. Regulators are adapting their supervisory frameworks to include crypto businesses, focusing on areas like anti-money laundering, consumer protection, and operational resilience. Understanding the scope of normal supervision helps firms anticipate compliance expectations and allocate resources accordingly.