What Regulatory Differences Exist between Dark Pools and OTC Trading in Traditional Finance, and How Does This Apply to Crypto?

In traditional finance, dark pools are generally regulated as Alternative Trading Systems (ATS) and have specific transparency requirements. OTC trading, while also regulated, is often less transparent, relying on reporting requirements after execution.

In the crypto space, regulatory frameworks are less mature and vary globally. Crypto dark pools and OTC desks often operate under less stringent, or evolving, regulations, though institutional venues increasingly seek compliance.