Definition ∞ Private Trading, in the digital asset space, refers to the exchange of cryptocurrencies or other digital tokens directly between two parties without the use of a public exchange or an order book. These transactions often occur off-chain or through over-the-counter desks, providing participants with greater control over pricing, execution, and privacy. It is typically favored by institutional investors or high-net-worth individuals for large block trades to minimize market impact. This method bypasses public market exposure.
Context ∞ Private trading plays a significant role in the digital asset market, particularly for large-volume transactions that could otherwise cause considerable price disruption on public exchanges. Regulatory oversight of private trading desks is an evolving area, with authorities seeking to ensure compliance with anti-money laundering and market integrity rules. The discussion often centers on balancing the need for institutional liquidity with the imperative for transparency and preventing market manipulation.
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