Consolidated Supervision

Definition ∞ Consolidated Supervision refers to the oversight of an entire financial group, including all its subsidiaries and affiliates, by a single regulatory authority. This approach ensures a comprehensive view of risks across diverse entities within a corporate structure. For digital asset firms, it helps prevent regulatory arbitrage and addresses potential systemic vulnerabilities.
Context ∞ The debate around Consolidated Supervision in the crypto space focuses on applying traditional financial oversight models to decentralized and globally distributed digital asset entities. Regulators are currently considering how to adapt this supervisory approach to effectively monitor interconnected crypto businesses and mitigate contagion risks. Monitoring international cooperation on this topic is key to understanding global regulatory directions.