Capital Integrity

Definition ∞ Capital integrity refers to the assurance that financial capital within a system remains sound and protected from loss or manipulation. In the context of digital assets, this means safeguarding the value and accessibility of funds against technical vulnerabilities, fraud, or illicit activities. It encompasses measures ensuring the verifiable existence and accurate accounting of assets. Maintaining capital integrity is paramount for investor confidence and the overall stability of any financial framework.
Context ∞ Discussions around capital integrity are prominent in crypto news, particularly concerning regulatory frameworks and security advancements. Regulators frequently emphasize the need for robust systems to uphold capital integrity within decentralized finance and digital asset exchanges. The ongoing development of secure protocols and audit mechanisms aims to strengthen this foundational principle. Ensuring capital integrity addresses critical concerns about systemic risk and consumer protection in the evolving digital economy.