Regulatory Gap Closure

Definition ∞ Regulatory gap closure refers to the process of developing and implementing new regulations or amending existing ones to address areas previously unregulated or inadequately covered by law. This effort aims to eliminate loopholes, enhance oversight, and ensure a comprehensive legal framework for emerging industries or technologies. It typically involves legislative action or the issuance of new policy guidelines by regulatory bodies. The objective is to achieve regulatory clarity.
Context ∞ In the digital asset sector, regulatory gap closure is a continuous and urgent process as governments worldwide strive to regulate cryptocurrencies and blockchain technology effectively. News often reports on legislative initiatives or policy proposals aimed at bringing digital assets under appropriate regulatory supervision. This activity seeks to mitigate risks associated with market volatility, consumer protection, and financial stability.