How is market abuse defined in the context of digital currencies?

3 answers

• cmxMay 21, 2025 · 2 months ago
  Market abuse in the context of digital currencies refers to any manipulative or deceptive practices that distort the fair and orderly functioning of the market. This can include activities such as insider trading, pump and dump schemes, spoofing, and wash trading. These actions are considered market abuse because they create an unfair advantage for certain participants and undermine the integrity of the market. Regulators and exchanges have implemented measures to detect and prevent market abuse in order to protect investors and maintain market stability.
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• Cassie BrightMar 22, 2023 · 2 years ago
  Market abuse in the digital currency space is defined as any fraudulent or manipulative activity that aims to distort the market and exploit other participants. This can involve spreading false information, engaging in price manipulation, or conducting unauthorized trades. Such actions are considered market abuse because they undermine trust and confidence in the market, and can lead to significant financial losses for unsuspecting investors. It is important for regulators and exchanges to actively monitor and address market abuse to ensure a fair and transparent trading environment.
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• Shabir JaffariFeb 02, 2025 · 6 months ago
  Market abuse in the context of digital currencies is a serious concern that can have detrimental effects on the market and its participants. It encompasses various activities such as insider trading, front-running, and pump and dump schemes. These actions are considered market abuse because they distort the price discovery process and create an unfair advantage for certain individuals or groups. Regulators and exchanges play a crucial role in detecting and preventing market abuse by implementing surveillance systems and enforcing strict regulations. By actively addressing market abuse, the digital currency industry can foster trust and attract more participants to the market.
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