Trading Suspension

Definition ∞ A trading suspension constitutes a temporary halt in the buying and selling of a particular asset on an exchange, initiated by the exchange or a regulatory body. This measure is typically implemented to mitigate market volatility, address technical issues, or investigate suspicious activity. It aims to protect investors and maintain market integrity. Such a pause restricts market activity for a specified period.
Context ∞ Crypto news frequently reports on trading suspensions for various digital assets, often due to significant price fluctuations, security breaches, or regulatory concerns. These events can significantly impact market liquidity and investor confidence. Exchanges often provide specific reasons for such actions to inform their user base. The decision to suspend trading often draws considerable attention and scrutiny.