Regulatory Convergence

Definition ∞ Regulatory convergence describes the process where different jurisdictions or regulatory bodies align their rules, standards, and oversight approaches for a particular industry or activity. This harmonization aims to reduce regulatory arbitrage, simplify cross-border operations, and foster a more consistent global market environment. It often involves international cooperation and the adoption of common principles or best practices. The objective is to create a more uniform and predictable regulatory landscape.
Context ∞ In the digital asset space, regulatory convergence is a critical development, as various national and international bodies strive to create coherent frameworks for cryptocurrencies and blockchain technology. Efforts by organizations like the Financial Action Task Force (FATF) and the International Organization of Securities Commissions (IOSCO) exemplify this push for unified global standards. The ongoing discussions will shape how digital assets are classified, traded, and supervised across different jurisdictions, influencing market stability and innovation.