Market Abuse Framework

Definition ∞ A market abuse framework comprises the rules and regulations designed to prevent unfair practices that distort market integrity and investor confidence. In digital asset markets, this framework addresses issues such as insider trading, market manipulation, and the dissemination of misleading information. Its implementation aims to ensure fair and transparent trading conditions for all participants. Such frameworks are critical for fostering a healthy and trustworthy trading environment.
Context ∞ The development and enforcement of a robust market abuse framework for digital assets is a pressing concern for regulators worldwide. A key debate involves adapting traditional financial market regulations to the pseudonymous and globally distributed nature of cryptocurrency markets. Future legislative efforts are expected to clarify prohibited behaviors and enhance surveillance capabilities to detect and deter manipulative activities.