Definition ∞ A consultation paper is a document issued by a regulatory body to solicit feedback from the public and industry stakeholders. It outlines proposed policies, rules, or legislative changes. These papers serve as a preliminary step in policy formulation. They aim to gather diverse perspectives before final decisions are made.
Context ∞ In the digital asset sector, consultation papers are frequently issued by financial authorities seeking input on new crypto regulations. These documents often address topics such as stablecoin oversight, DeFi protocols, or licensing requirements for virtual asset service providers. The responses received significantly influence the direction and scope of forthcoming regulatory frameworks for digital assets.
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