Regulation refers to compliance with established rules, laws, and guidelines set forth by governmental or regulatory authorities overseeing financial activities.

Regulatory compliance implies adherence to specific standards to ensure industry transparency, security, and legality.

Regulating for cryptocurrency-related entities such as exchanges, wallets, or projects entails complying with anti-money laundering laws (AML), knowing your customer (KYC) protocols, and data protection regulations.

Compliance often requires these entities to implement robust security measures, conduct thorough customer verification processes, and report transactions to relevant authorities to prevent illicit activities, such as money laundering or terrorist financing.

Regulation in the crypto space aims to enhance consumer protection, mitigate risks associated with financial crimes, and foster legitimacy and trust within the industry.

Countries and jurisdictions worldwide are establishing frameworks to regulate cryptocurrencies and their associated services, balancing innovation with the need for investor protection and financial stability.