Financial Market Integrity

Definition ∞ Financial market integrity denotes the soundness and fairness of financial markets, ensuring equitable participation and reliable operations. It encompasses the absence of manipulation, fraud, and other illicit activities, alongside transparent pricing mechanisms and robust regulatory oversight. Maintaining this integrity builds investor confidence and supports efficient capital allocation across various asset classes, including digital assets. It relies on adherence to rules and ethical conduct by all market participants.
Context ∞ Financial market integrity is a central concern for regulators examining the digital asset space, particularly regarding preventing market abuse and protecting retail investors. Debates often address how existing regulations apply to novel crypto products and the need for new rules to preserve fair trading conditions. Ensuring integrity is crucial for the mainstream acceptance and integration of digital assets into the broader financial system.