Definition ∞ Enhanced financial disclosure requires organizations to provide more detailed and transparent financial information to stakeholders, regulators, and the public. In the digital asset sector, this extends to revealing asset backing, operational solvency, and the mechanics of token issuance. This practice builds confidence and mitigates informational asymmetry. It promotes greater accountability within the digital economy.
Context ∞ Recent market events in the cryptocurrency space have amplified calls for greater financial transparency from centralized exchanges and stablecoin issuers. This demand aims to build investor confidence and mitigate potential systemic risks. Regulators are actively considering new mandates for such disclosures.
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