Definition ∞ Unlicensed money transmission refers to the operation of services that transfer funds on behalf of others without obtaining the necessary regulatory licenses. In the digital asset space, this applies to entities facilitating cryptocurrency transfers or exchanges without proper registration as money service businesses. Such activities pose risks related to anti-money laundering compliance and consumer protection. It represents a significant regulatory concern.
Context ∞ The state of unlicensed money transmission in the digital asset sector is a focal point for regulators seeking to prevent illicit financial flows and safeguard market integrity. Jurisdictions are increasingly enforcing existing laws and issuing warnings to unregistered operators. A critical challenge involves clearly defining what constitutes money transmission in the context of decentralized protocols. Future efforts will likely involve more stringent enforcement and clearer guidance to address this regulatory gap.
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