Regulatory Conduct

Definition ∞ Regulatory conduct describes the actions and practices of individuals or entities as they pertain to established legal and administrative rules and guidelines. This concept involves adherence to compliance requirements, ethical standards, and operational transparency mandated by oversight bodies. It is a measure of an entity’s conformity with the legal framework governing its operations. Proper conduct is essential for market trust.
Context ∞ In the cryptocurrency industry, regulatory conduct is a primary focus for governments aiming to mitigate risks associated with illicit finance and investor protection. The situation involves navigating a complex and often ambiguous legal landscape, with varying interpretations across jurisdictions. A critical future development is the emergence of harmonized international standards that provide clear expectations for compliant behavior in digital asset markets.