Definition ∞ A transitional regime describes an interim period during which new regulations or policies are gradually introduced and implemented, often bridging existing frameworks with future requirements. This phase allows market participants to adapt to new rules and provides regulators with an opportunity to refine their approach. In the digital asset sector, transitional regimes are frequently established to manage the shift from an unregulated to a regulated environment. It aims to minimize market disruption while ensuring compliance.
Context ∞ The discussion surrounding transitional regimes in crypto news often concerns the phased implementation of comprehensive digital asset regulations by various jurisdictions. A key debate involves the duration and specific requirements of these interim periods to allow for orderly market adjustments. Future developments will likely see more countries adopting transitional approaches, balancing innovation with regulatory oversight during periods of significant change.
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