Restricted Investments

Definition ∞ Restricted investments are financial assets that are subject to specific limitations on their transferability, liquidity, or ownership, often due to regulatory requirements or contractual agreements. These limitations typically prevent immediate public trading and may require a holding period or specific conditions for resale. In the digital asset domain, certain tokens or digital securities might fall under this classification. Such restrictions aim to protect investors and maintain market order.
Context ∞ The classification of digital assets as restricted investments is a significant consideration for market participants and regulators. Tokens issued through private placements or subject to lock-up periods exemplify this concept. The regulatory landscape is still evolving regarding how these restrictions apply to decentralized exchanges and global digital asset markets, posing compliance challenges for issuers and platforms.