Enforcement by Regulation

Definition ∞ Enforcement by regulation refers to the process by which governmental authorities ensure compliance with laws and rules through administrative actions, penalties, or legal proceedings. This mechanism holds entities accountable for adhering to established standards. It serves to maintain market integrity, protect consumers, and preserve financial stability. Regulatory bodies wield specific powers to compel adherence and address violations.
Context ∞ In the cryptocurrency sector, enforcement by regulation is becoming increasingly prominent as jurisdictions seek to manage the risks associated with digital assets. Regulators like the SEC or CFTC issue guidance, impose fines, and pursue legal actions against crypto exchanges, issuers, or individuals for non-compliance with securities, commodities, or AML laws. These actions significantly influence market practices and the operational scope of digital asset businesses. News often covers specific enforcement cases that establish precedents and clarify regulatory boundaries.