Definition ∞ Policy integration involves combining different policy areas or regulatory approaches to achieve a cohesive and comprehensive outcome. This process seeks to ensure that various regulations, guidelines, and strategic objectives work in concert rather than in isolation or conflict. It is particularly important when addressing complex issues that span multiple governmental departments or jurisdictions. The aim is to create a more effective and consistent regulatory environment, avoiding gaps or overlaps.
Context ∞ In the digital asset sector, policy integration is crucial as cryptocurrencies intersect with financial services, technology, and anti-money laundering regulations. Regulators are working to integrate crypto-specific rules into existing financial frameworks, ensuring consistency across traditional and digital markets. This effort aims to provide clarity for market participants and prevent regulatory arbitrage across different jurisdictions.