A co-regulation model involves both government bodies and industry organizations sharing responsibility for regulatory oversight. In this approach, governmental authorities establish broad legal frameworks, while industry groups develop specific operational rules and standards. This collaborative structure aims to combine regulatory authority with specialized industry knowledge. It often seeks to foster innovation while maintaining appropriate levels of market integrity and consumer protection.
Context
The co-regulation model is a topic of increasing relevance in the rapidly evolving digital asset sector. Regulators consider it a flexible method to govern new technologies where traditional rules may not directly apply. Debates often center on the appropriate balance of power between state agencies and self-regulatory organizations to ensure effective and equitable market supervision.
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