Regulated

What Does Regulated Mean?

Regulated refers to the control or maintenance of a specific thing, such as an exchange or currency, to ensure proper operation. In the realm of cryptocurrencies, a currency is considered regulated if its sale falls under state or federal law as a security or is classified as money transmission under state law. Essentially, regulation entails controlling something to make it function in a specific manner or adhere to predetermined rules. 

When it comes to cryptocurrencies, you may have come across the terms “regulated market” or “controlled market.” This refers to a market that operates as an idealized system where the government or other organizations oversee and control the market forces of supply and demand. They can even intervene in market actions if necessary. 

However, regulated markets offer various benefits and encompass different forms of regulation, including controls, oversight, environmental protection, taxation, and anti-discrimination measures.

It is important to note that regulations can evolve over time due to technological advancements and changing attitudes towards specific regulations in general. 

The concept of regulated markets dates back to ancient societies, where standardized weights and measurements were relied upon, and theft or fraud was met with punishment. It is truly fascinating to see the origins of this practice.

Another way to define a market is as a multilateral system operated and managed by a market operator, with the aim of bringing together multiple third-party buyers and facilitating the trading of financial instruments. This system operates in accordance with its rules and can result in contracts related to the financial instruments traded under its rules or systems.