Understanding “Regulated”
The term “regulated” refers to controlling and maintaining a specific entity or system to ensure its proper operation.
In the context of cryptocurrencies, regulation typically pertains to whether the sale of a particular currency constitutes the sale of a security under state or federal law or if it falls under the category of money transmission as defined by state law.
Governing Market and Entity Operations
In general, regulation involves imposing specific rules or guidelines to govern the functioning of a market or entity.
For instance, a regulated market, also known as a controlled market, is an idealized system where government or other organizations oversee and regulate market activities, including supply, demand, and market actions.
This regulation can encompass various aspects such as controls, oversight, environmental protection, taxation, and anti-discrimination measures.
Evolving Regulations
It’s important to note that regulations may evolve over time due to technological advancements and changing attitudes towards specific regulations.
The practice of regulated markets can be traced back to ancient societies that relied on standardized weights and measures and imposed punishments for theft or fraud.
In another sense, a market can be defined as a multilateral system operated and managed by a market operator.
Its purpose is to bring together buyers and sellers of financial instruments, facilitating the formation of contracts based on the rules and systems defined by the market operator.