Consumer Protection Mandate

Definition ∞ A consumer protection mandate is a regulatory requirement obliging entities to safeguard the interests of their customers. This includes ensuring fair practices, transparency, and security for individuals using financial products or services. In the context of digital assets, it addresses risks such as fraud, market manipulation, and inadequate disclosure. Regulators issue these mandates to maintain public confidence and prevent consumer harm.
Context ∞ Consumer protection mandates are a significant focus for regulators addressing the digital asset market. Concerns about volatile crypto investments and the security of digital wallets frequently drive policy discussions. A critical debate involves determining the appropriate scope of protection without stifling innovation. Future regulatory actions will likely strengthen these mandates, particularly for retail investors in crypto markets.