Control Based Framework

Definition ∞ A Control Based Framework establishes a system of internal checks and balances to manage risks and ensure compliance within an organization. In the context of digital assets, it delineates specific procedures and policies to govern operations involving cryptocurrencies. This framework helps organizations maintain operational security, prevent financial misconduct, and meet regulatory requirements. It specifies who can do what, under what conditions, and with what approvals.
Context ∞ The application of Control Based Frameworks within the digital asset industry is a significant area of focus for regulatory bodies and financial institutions. A key discussion point involves adapting traditional financial controls to the unique characteristics of blockchain technology and decentralized finance. Future developments will likely include more specialized frameworks addressing novel risks associated with new digital asset classes and protocols.