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Regulatory Pressure

Definition

Regulatory pressure refers to the influence and scrutiny exerted by government bodies and financial authorities on the cryptocurrency industry. This involves actions such as introducing new laws, issuing guidelines, conducting investigations, or imposing sanctions to control and oversee digital asset activities. Regulatory pressure aims to mitigate risks associated with illicit finance, protect consumers, ensure market stability, and establish clear legal boundaries for blockchain technology. It can significantly impact market sentiment, innovation, and the operational scope of crypto businesses.