Enforcement Framework

Definition ∞ An enforcement framework refers to the structured system of rules, procedures, and agencies responsible for ensuring compliance with laws and regulations. It details how violations are identified, investigated, and penalized. A robust framework is essential for maintaining order and fairness within any regulated industry. It provides the mechanism for applying legal standards.
Context ∞ In the digital asset sector, the development and application of enforcement frameworks are rapidly evolving, as regulators worldwide grapple with new technologies. News frequently reports on regulatory actions against unregistered exchanges or projects deemed to be offering unregistered securities. A key discussion involves tailoring existing financial laws to the unique characteristics of blockchain technology. The clarity and consistency of these frameworks are critical for market participants and overall industry stability.