Investor Disclosure

Definition ∞ Investor disclosure mandates that entities offering investment opportunities provide comprehensive and accurate information to potential and existing investors. This information typically includes details about the asset, associated risks, financial performance, and operational structure. The purpose is to enable informed decision-making and protect against fraudulent practices. Transparency is a central requirement.
Context ∞ In the cryptocurrency sector, investor disclosure is a significant area of focus for regulators, particularly concerning initial coin offerings (ICOs) and token sales. The situation often involves debates about whether certain digital assets constitute securities, thereby triggering traditional disclosure requirements. A critical future development is the establishment of clear, consistent guidelines for what information must be provided to crypto investors.