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Regulatory Parity

Definition

Regulatory parity advocates for applying similar rules and oversight to comparable financial activities, regardless of the underlying technology. This principle suggests that digital asset services performing functions analogous to traditional financial services should be subject to equivalent regulatory standards. The objective is to prevent regulatory arbitrage, where entities exploit differing rules across sectors to gain an unfair advantage or avoid oversight. It seeks to ensure a level playing field and consistent consumer protection across both traditional and digital asset markets.