Definition ∞ An enforcement-first policy describes a regulatory approach where authorities prioritize taking action against violations before establishing comprehensive regulatory frameworks. This strategy involves issuing penalties, sanctions, or legal proceedings to address perceived misconduct. The intent is to deter illicit activities and signal regulatory boundaries, even in the absence of explicit rules. It serves as a reactive measure to control emerging markets or technologies.
Context ∞ In the digital asset space, many jurisdictions have adopted an enforcement-first policy due to the rapid expansion and novel characteristics of cryptocurrencies. News often highlights regulatory bodies pursuing legal actions against digital asset firms for unregistered securities offerings or operational irregularities. The ongoing debate questions whether this approach stifles innovation or effectively manages risk, with calls for clearer legislative guidance to supplement enforcement actions.
Blockchain Knowledge
Cryptocurrency Foundation
Cryptospace Newsfeed
