Small Platform Exemption

Definition ∞ Small Platform Exemption refers to a provision in regulatory frameworks that allows smaller entities or platforms to operate with reduced compliance burdens. These exemptions are typically granted based on factors like transaction volume, user count, or asset under management. The aim is to foster innovation without imposing excessive costs on nascent operations.
Context ∞ The situation for small platform exemptions in the digital asset space is a frequent topic in regulatory debates, particularly concerning new entrants and startups. A key discussion centers on defining the criteria for such exemptions without compromising investor protection or market integrity. Future developments may see more tailored regulatory approaches that distinguish between large, established platforms and smaller, emerging ones.