Regulated Entity

Definition ∞ A regulated entity is any organization, firm, or institution that operates under the direct supervision and rules of a governmental or financial authority. In the digital asset sector, this includes cryptocurrency exchanges, custodians, or lending platforms that have obtained licenses and adhere to specific legal frameworks. Such entities are subject to audits, reporting requirements, and compliance obligations. Their status aims to provide consumer protection and systemic stability.
Context ∞ The emergence of regulated entities within the digital asset space is a key indicator of the industry’s maturation and integration into mainstream finance. Discussions often center on the balance between innovation and regulatory burden, as well as the jurisdiction-specific requirements for licensing. News frequently covers new firms obtaining regulatory approvals, enforcement actions against non-compliant entities, and the evolving global landscape of digital asset regulation.