Definition ∞ Outsourcing Prevention refers to regulatory stipulations or internal corporate policies designed to mitigate risks associated with delegating critical operational functions to third-party service providers. In the digital asset sector, this often involves ensuring that essential services, such as custody, cybersecurity, or compliance, retain sufficient internal oversight and control. The aim is to prevent undue reliance on external entities and maintain accountability for core business processes. It safeguards against systemic vulnerabilities.
Context ∞ The discussion around Outsourcing Prevention in the crypto industry is gaining prominence as digital asset firms increasingly rely on specialized third-party services. Regulators emphasize the need for robust governance frameworks to manage the risks introduced by external dependencies. A critical future development involves establishing clear guidelines and best practices for risk assessment and oversight of outsourced functions to ensure the stability and security of the digital asset ecosystem.
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