Conduct Obligations

Definition ∞ Conduct obligations are rules that govern how individuals or entities must behave in financial markets. These regulatory requirements mandate fair dealing, transparency, and ethical practices from market participants, particularly those offering financial services or products. In the digital asset realm, conduct obligations extend to exchanges, custodians, and decentralized finance protocols, aiming to protect consumers and maintain market integrity. Adherence to these standards is critical for operational legitimacy and investor confidence.
Context ∞ The discussion around conduct obligations is prominent in crypto news, especially as regulators worldwide work to establish comprehensive frameworks for digital assets. Debates persist regarding the applicability of existing financial regulations to novel blockchain-based services and the creation of new, tailored rules. Strict enforcement of these obligations is viewed as essential for mainstream adoption and mitigating illicit activities.