Disclosure and Conduct

Definition ∞ Disclosure and conduct refer to the regulatory principles requiring transparency and ethical behavior from market participants. These principles mandate that entities provide accurate and complete information to investors and operate with integrity, fairness, and competence. In the context of digital assets, this involves clear communication about risks, product features, and business operations. Adherence to these standards aims to protect consumers and maintain confidence in financial markets, including those involving cryptocurrencies.
Context ∞ The application of traditional disclosure and conduct rules to the rapidly evolving digital asset sector presents ongoing regulatory challenges. Debates persist over how best to ensure adequate investor protection without stifling innovation, particularly for decentralized protocols. Regulators worldwide are working to establish clearer guidelines and enforcement mechanisms to address potential information asymmetries and market manipulation in crypto markets.