The era of unregulated exchangers is ending. Regulators worldwide require virtual asset service providers (VASPs) to segregate client funds, maintain auditability, control money laundering, and enforce strong cybersecurity. Those who aren't ready lose access to banks, institutional clients, and the legal market.
The key point: most of these requirements are technical. They concern how your infrastructure for storing and processing funds is built. And this is exactly where a self-hosted custodial model gives an advantage: client assets are isolated, keys are under your control, and every operation is logged and auditable.