Regulatory Guidance

Definition ∞ Regulatory guidance consists of official statements or interpretations issued by government agencies to clarify legal requirements. These documents assist regulated entities in understanding and complying with specific laws, rules, and policies without being legally binding like statutes or regulations. They provide practical advice on how to meet compliance obligations and avoid enforcement actions. Guidance often addresses new technologies or complex areas where existing rules may be ambiguous.
Context ∞ For the digital asset sector, regulatory guidance is critically important, as it helps businesses navigate an evolving legal landscape. News frequently reports on new guidance from financial authorities regarding token classifications, licensing requirements, and consumer protection. The clarity provided by such guidance helps shape industry practices and influences the pace of innovation.