Definition ∞ Tailored obligations are specific rules or requirements designed to fit particular types of businesses or digital assets. This regulatory principle acknowledges that a one-size-fits-all approach is often ineffective for diverse digital asset activities. Instead, it involves crafting compliance requirements that are proportionate to the risks and characteristics of specific crypto products, services, or market participants. This method aims to foster innovation while ensuring appropriate levels of consumer protection and financial stability.
Context ∞ The concept of tailored obligations is gaining traction in global regulatory discussions for digital assets, moving away from rigid application of traditional finance rules. Frameworks like MiCA adopt this approach by differentiating requirements based on asset classification or service provider size. The ongoing challenge involves accurately assessing risks to define effective and appropriate obligations for a rapidly evolving industry.
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