A risk-based approach to regulation or security involves allocating resources and implementing controls proportionate to the identified risks. In the digital asset sector, this means focusing regulatory efforts and security measures on areas with the highest potential for harm, such as large exchanges or high-value transactions. This methodology allows for efficient resource deployment and tailored risk mitigation strategies. It prioritizes the most significant threats.
Context
The adoption of a risk-based approach is a widely discussed principle in the development of crypto regulations and cybersecurity frameworks. Debates often concern how to accurately assess and categorize risks within the rapidly changing digital asset landscape. Future regulatory guidance will likely emphasize flexible, risk-based frameworks to address emerging threats without stifling innovation.
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