Market Abuse Regulation

Definition ∞ Market Abuse Regulation refers to a set of rules designed to prevent unlawful practices that distort market prices or mislead investors. These regulations prohibit activities such as insider trading, market manipulation, and unlawful disclosure of information. The aim is to ensure fair, transparent, and efficient financial markets. Compliance is essential for maintaining investor confidence and market integrity.
Context ∞ The application of market abuse regulation to digital asset markets presents distinct challenges due to their global, often pseudonymous, and less regulated nature. Regulators are actively working to adapt existing frameworks to address novel forms of manipulation and insider dealing in crypto markets. Discussions frequently address cross-border enforcement and data collection for decentralized trading venues. Future efforts will concentrate on developing effective surveillance tools and international cooperation to combat digital asset market abuse.