Financial System Integrity

Definition ∞ Financial system integrity refers to the soundness, reliability, and trustworthiness of a financial system, ensuring that transactions are processed accurately and securely, and that market participants operate fairly. In the context of digital assets, this means preventing fraud, manipulation, and systemic failures to maintain confidence in blockchain-based financial services. It underpins the stability and functionality of economic activity.
Context ∞ Financial system integrity is a central concern for regulators and policymakers as digital assets become more integrated into global finance. Debates often focus on how to extend traditional regulatory principles to decentralized and permissionless systems without impeding innovation. A critical future development involves the collaborative establishment of international standards and interoperable regulatory frameworks to uphold integrity across both conventional and digital financial sectors.