Regulated Activity

Definition ∞ Regulated Activity refers to any action or operation that falls under the oversight and control of governmental or financial authorities. In the digital asset space, this includes services like operating cryptocurrency exchanges, offering digital asset custody, or issuing stablecoins, which are subject to specific legal frameworks. Compliance with these regulations is mandatory for entities conducting such operations.
Context ∞ Regulated Activity is a central and evolving topic in crypto news, as jurisdictions worldwide strive to classify and supervise various digital asset operations. The debate often centers on whether existing financial laws adequately cover new blockchain-based services or if tailored legislation is necessary. Firms operating in this space must constantly monitor and adapt to policy changes to ensure legal adherence and avoid penalties.