Supervisory Coordination

Definition ∞ Supervisory coordination refers to the collaborative efforts between different regulatory bodies to oversee financial activities. This cooperation involves sharing information, harmonizing regulatory approaches, and coordinating enforcement actions across various jurisdictions or sectors. For digital assets, it is particularly important due to the global and borderless nature of virtual asset activities. Effective coordination helps prevent regulatory arbitrage, addresses cross-border risks, and ensures a consistent application of rules.
Context ∞ The need for enhanced supervisory coordination among international regulators is a prominent discussion point concerning the global digital asset market. Organizations like the Financial Stability Board and FATF are advocating for standardized approaches to address money laundering and market integrity risks. This ongoing effort aims to establish a more cohesive global regulatory landscape for virtual assets.