Capital Markets Authority

Definition ∞ A Capital Markets Authority is a government body that oversees and regulates financial markets. Its role involves safeguarding investor interests, promoting fair and efficient capital markets, and ensuring compliance with securities laws. These authorities license market participants and enforce regulations to maintain market integrity.
Context ∞ In the digital asset space, Capital Markets Authorities globally are deliberating how to classify and regulate various crypto offerings, including security tokens and investment products. Their pronouncements and regulatory actions significantly influence the operating environment for cryptocurrency firms and the scope of digital asset inclusion in traditional investment portfolios. Harmonization of international regulatory approaches represents a key challenge.