Regulated DLT Framework

Definition ∞ A Regulated DLT Framework refers to a set of legal and operational guidelines established by authorities for distributed ledger technology (DLT) applications. This framework provides clarity on how blockchain-based systems must operate to comply with existing financial regulations and consumer protection laws. It aims to integrate DLT innovation within a supervised environment, ensuring stability and integrity. Such frameworks are essential for the mainstream adoption of blockchain in regulated industries.
Context ∞ The development of regulated DLT frameworks is a priority for governments and financial regulators seeking to manage the risks and opportunities of digital assets. Debates often concern balancing innovation with robust oversight and harmonizing international standards. These frameworks aim to provide legal certainty for businesses operating with blockchain technology. News frequently reports on new legislative initiatives and pilot programs exploring the application of DLT under specific regulatory guidelines.