Regulated Entities

Definition ∞ Regulated Entities are organizations or individuals operating within the digital asset space that are subject to oversight and compliance requirements by governmental or financial authorities. These include licensed cryptocurrency exchanges, custodial service providers, and institutions offering crypto-related financial products. Their operations must adhere to specific legal frameworks concerning anti-money laundering, know-your-customer, and consumer protection.
Context ∞ The increasing participation of regulated entities in the digital asset market signals a maturation of the industry and a growing acceptance by traditional finance. Discussions often focus on the challenges of balancing innovation with regulatory compliance and the development of clear, consistent global standards. The expansion of regulated entities is critical for attracting broader institutional investment and mainstream adoption.