Are There Regulatory Measures in Crypto to Combat Front-Running?
Unlike traditional finance, where front-running is strictly illegal under market manipulation laws, the decentralized nature of crypto makes direct regulatory enforcement difficult. Instead, technical solutions are being developed, such as private transaction pools and specialized protocols designed to randomize transaction order.
Regulatory bodies are beginning to issue guidance, but a unified, enforceable global rule set is still evolving.
Glossar
Regulatory Measures
Regulation ⎊ These measures represent the formal rules, directives, and oversight mechanisms imposed by governing bodies on the cryptocurrency and financial derivatives landscape.
Private Transaction Pools
Anonymity ⎊ Private transaction pools represent a mechanism for obscuring the direct on-chain link between transacting parties, particularly relevant within decentralized finance and cryptocurrency derivatives.
Transaction Order Randomization
Order ⎊ Transaction Order Randomization, within the context of cryptocurrency derivatives, options trading, and financial derivatives, represents a suite of techniques designed to obfuscate the chronological sequence of order submissions.