Regulatory Coordination

Definition ∞ Regulatory coordination involves the collaborative efforts between different regulatory bodies or jurisdictions to align their policies and enforcement actions. This is particularly relevant in globalized markets where financial activities can span multiple legal frameworks. The aim is to ensure consistent oversight and prevent regulatory arbitrage.
Context ∞ The current discussions on regulatory coordination in the digital asset space are intensified by the global nature of blockchain technology and the varied approaches taken by different countries. Key debates involve establishing common standards for anti-money laundering (AML) and know-your-customer (KYC) regulations, as well as harmonizing rules for stablecoins and decentralized finance (DeFi). Future developments are expected to focus on international agreements and the creation of more unified global regulatory frameworks.