How Do Capital Requirements for Crypto Exchanges Differ between Major Regulatory Jurisdictions?

Capital requirements vary significantly, reflecting the fragmented regulatory landscape. Highly regulated jurisdictions like the US and EU impose strict minimum capital and reserve requirements on exchanges and derivatives clearing organizations to ensure solvency and protect customer funds.

Less regulated jurisdictions may have minimal or no specific requirements. MiCA in the EU, for instance, sets specific capital thresholds for Crypto-Asset Service Providers (CASPs) based on the services they offer.