Regulatory compliance is crucial in cryptocurrency exchange development to ensure legal legitimacy, protect investors, and mitigate risks. Compliance with regulatory requirements helps exchanges build trust with users, financial institutions, and regulators, fostering greater adoption and participation in the crypto market. Failure to comply with regulations can result in legal consequences, fines, and reputational damage. Therefore, exchanges must stay abreast of regulatory developments and implement robust compliance measures to operate ethically and sustainably in the long term.