Regulatory Framework Convergence

Definition ∞ Regulatory framework convergence describes the process where different regulatory bodies or jurisdictions begin to align their rules and guidelines for a particular industry or asset class. This alignment reduces discrepancies and creates a more uniform legal environment. For digital assets, convergence aims to establish consistent global standards, minimizing regulatory arbitrage and fostering cross-border operational efficiency. It simplifies compliance for international businesses.
Context ∞ The lack of regulatory framework convergence remains a significant hurdle for the global digital asset market, leading to fragmentation and uncertainty for businesses operating across multiple jurisdictions. Discussions frequently highlight the need for international cooperation to develop harmonized standards for digital asset classification, issuance, and trading. Future efforts are expected to focus on multilateral agreements and shared best practices to achieve greater consistency in global digital asset regulation.