PMLA Framework

Definition ∞ The PMLA Framework refers to the Prevention of Money Laundering Act framework, a legal structure designed to combat money laundering and terrorist financing. In the context of digital assets, this framework imposes obligations on crypto businesses to report suspicious transactions and conduct customer due diligence. It aims to integrate digital asset activities into existing anti-financial crime regulations. Adherence to PMLA is mandatory for regulated entities.
Context ∞ The PMLA Framework is a central discussion point for digital asset businesses operating in jurisdictions where it applies, influencing compliance costs and operational procedures. Debates often concern the practical challenges of applying traditional financial regulations to decentralized and pseudonymous digital asset transactions. Future developments include updated interpretive guidance and technological solutions to streamline compliance within the unique characteristics of the crypto sector.