“Same activity” refers to the principle that similar financial activities should be subject to similar regulatory requirements, regardless of the technology or entity performing them. In digital asset regulation, this concept argues that traditional financial rules should apply to crypto services performing analogous functions, such as lending or trading. It promotes regulatory consistency and a level playing field. This principle avoids regulatory arbitrage.
Context
News often highlights the “same activity” principle in discussions about applying existing financial regulations to digital asset services. Regulators frequently invoke this concept to justify extending current rules to cryptocurrency exchanges, stablecoin issuers, and DeFi protocols. Debates involve how to apply traditional frameworks to novel decentralized structures without impeding technological progress.
Global securities regulators must now integrate 18 IOSCO recommendations into national law, fundamentally restructuring CASP compliance for custody, market integrity, and vertical integration risks.
The World Federation of Exchanges' opposition mandates that firms offering tokenized securities must prepare for full broker-dealer registration, not regulatory bypass.
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