Glossary › Regulation & Legal › Broker-Dealer
Regulation & Legal Intermediate

Broker-Dealer

Definition

A registered entity that buys and sells securities on behalf of clients. Some crypto platforms may need broker-dealer registration to trade security tokens or offer certain financial services.

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Difficulty
Intermediate
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Category
Regulation & Legal
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See Also
8 related

◆ Key Takeaways

1

A registered entity that buys and sells securities on behalf of clients.

2

Some crypto platforms may need broker-dealer registration to trade security tokens or offer certain financial services.

Why It Matters

This regulatory concept affects how crypto businesses operate and how individuals report and manage their crypto activities. Staying informed helps you remain compliant and avoid legal issues.

Related Terms in Regulation & Legal

SEC
The U.S. Securities and Exchange Commission — primary regulator of securities markets. Has classified many crypto tokens as unregistered securities and pursued enforcement against major exchanges.
CFTC
U.S. Commodity Futures Trading Commission — regulates derivatives and commodities including Bitcoin and Ethereum futures markets. Has taken enforcement actions against unregistered crypto platforms.
FinCEN
Financial Crimes Enforcement Network — the U.S. Treasury bureau enforcing anti-money laundering laws. Crypto exchanges and money service businesses must register with FinCEN and comply with BSA requirements.
FATF
Financial Action Task Force — the international body setting global anti-money laundering standards. FATF's Travel Rule requires crypto service providers to share customer information for transfers above thresholds.
MiCA
Markets in Crypto-Assets Regulation — the EU's comprehensive framework for crypto regulation effective 2024. Covers token issuance, stablecoin requirements, and licensing for crypto service providers across all EU states.
MiCAR
The formal legal name for the MiCA Regulation in EU law. Establishes harmonized rules for crypto-asset service providers, stablecoin issuers, and token offerings throughout the European Economic Area.
Travel Rule
A FATF requirement that financial institutions share originator and beneficiary information for transfers above a threshold. Applied to crypto, VASPs must exchange customer data for qualifying transactions.
KYC
Know Your Customer — mandatory identity verification requiring government ID, proof of address, and sometimes biometric data. Required by regulated exchanges and service providers under AML laws.

Explore Other Categories

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