Policy Harmonization

Definition ∞ Policy Harmonization involves the alignment and standardization of regulatory policies and legal frameworks across different jurisdictions or entities. This process aims to reduce discrepancies and conflicts in rules governing specific industries or activities. In the global digital asset space, policy harmonization is critical for fostering consistent regulation, preventing regulatory arbitrage, and facilitating international cooperation. It seeks to create a more predictable and unified operational environment for blockchain businesses.
Context ∞ The fragmented global regulatory landscape for digital assets makes policy harmonization a pressing concern for governments and industry stakeholders. News frequently covers international forums and initiatives working towards greater policy harmonization for cryptocurrencies and stablecoins. Achieving policy harmonization is considered vital for enabling cross-border digital asset services and reducing compliance burdens for companies.