Regulatory Exemption

Definition ∞ A regulatory exemption is a specific waiver or relief granted by a regulatory authority from certain legal or compliance obligations. These exemptions are typically provided under particular circumstances to reduce undue burden or to allow for innovation. They permit entities to operate without strictly adhering to all rules that would otherwise apply. Such exemptions are often conditional and time-limited.
Context ∞ Regulatory exemptions are frequently discussed in the context of digital asset innovation, as new blockchain technologies and business models may not fit existing regulatory frameworks. News often covers instances where startups or pilot programs seek exemptions to test novel crypto products or services. The challenge for regulators involves granting appropriate relief to foster innovation while ensuring adequate consumer protection and market integrity.