Conduct of Business

Definition ∞ Conduct of business refers to the ethical and operational standards that financial firms and service providers must uphold in their interactions with clients and the market. These rules govern aspects such as fair treatment of customers, appropriate product disclosure, and responsible marketing practices. In the digital asset sector, these standards extend to cryptocurrency exchanges, custodians, and decentralized application developers. Adherence ensures market integrity and consumer protection.
Context ∞ The application of conduct of business rules to cryptoasset service providers is a significant area of regulatory focus, particularly concerning investor protection and market integrity. Regulators are grappling with how to apply existing financial principles to novel digital asset structures and decentralized autonomous organizations. A key debate involves establishing clear guidelines that address the unique risks of crypto markets without stifling innovation.