Virtual Asset Entities

Definition ∞ Virtual asset entities are businesses or organizations that conduct activities involving virtual assets, such as cryptocurrencies, stablecoins, or non-fungible tokens. This includes exchanges, custodians, wallet providers, and decentralized finance platforms. These entities facilitate the creation, storage, transfer, or trading of digital assets. They form the operational backbone of the digital asset economy.
Context ∞ Virtual asset entities are at the forefront of regulatory scrutiny worldwide, as governments seek to establish frameworks for managing risks associated with digital assets. News frequently reports on new licensing requirements, compliance mandates, and enforcement actions against these entities. Understanding their diverse roles and the regulatory landscape they operate within is essential for comprehending developments in the digital asset market and broader financial system.