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Unregulated Meaning

Unregulated refers to industries, markets, or activities that operate without formal oversight from governmental or regulatory authorities. In the context of finance and cryptocurrency, unregulated environments lack rules or supervision governing how products are offered, traded, or managed.

While unregulated markets can foster innovation and rapid growth by reducing barriers to entry, they also carry significant risks, including fraud, market manipulation, and inadequate consumer protection. Participants in unregulated crypto markets should exercise caution, conduct due diligence on counterparties, and be aware that recourse in cases of loss or misconduct may be limited.

Conversely, projects may choose to operate in regulated jurisdictions to increase credibility and appeal to institutional investors.

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