Market Abuse Regime

Definition ∞ A market abuse regime comprises a set of laws and regulations designed to prevent and detect behaviors that distort fair market functioning. This includes prohibitions against insider trading, market manipulation, and unlawful disclosure of inside information. The regime aims to maintain market integrity, ensure investor confidence, and promote equitable trading conditions. Enforcement actions under such a regime impose penalties on those who violate these established rules.
Context ∞ Applying a market abuse regime to digital asset markets presents unique challenges due to their decentralized nature and global accessibility. Current discussions center on adapting surveillance technologies to detect manipulative practices across various crypto exchanges and protocols. Future regulatory efforts will likely involve increased cross-border cooperation and the development of specialized tools to monitor and enforce market conduct rules within the digital asset ecosystem.