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Regulatory Credibility

Definition

Regulatory credibility refers to the trust and confidence placed in a regulatory body’s ability to enforce rules fairly and effectively. This quality is built upon consistent application of laws, clear communication of guidelines, and demonstrated expertise in overseeing regulated entities and markets. In the digital asset sector, strong regulatory credibility is crucial for fostering investor protection, reducing market manipulation, and encouraging legitimate innovation. It signifies that regulatory actions are perceived as legitimate and serve the public interest.