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Investor Safeguards

Definition

Investor safeguards are measures implemented to protect individuals and entities investing in financial markets from undue risk or misconduct. These protections include regulatory frameworks, disclosure requirements, anti-fraud provisions, and mechanisms for dispute resolution, all designed to ensure fair and transparent market operations. In the digital asset sphere, investor safeguards address concerns such as asset custody, market manipulation, and operational security of exchanges and decentralized platforms. Their objective is to build confidence and reduce vulnerabilities for participants in nascent digital economies.