Supervisory Regime

Definition ∞ A supervisory regime constitutes the comprehensive set of rules, policies, and practices implemented by regulatory authorities to oversee and monitor financial institutions or markets. This framework includes licensing requirements, ongoing compliance checks, risk assessments, and enforcement actions to ensure adherence to regulations. Its primary goal is to maintain financial stability, protect consumers, and prevent illicit activities within the supervised domain. It provides structured oversight.
Context ∞ In crypto news, the establishment and evolution of a supervisory regime for digital assets are constant topics. Governments and international bodies are working to define appropriate oversight frameworks for cryptocurrency exchanges, stablecoin issuers, and decentralized finance protocols. Discussions often address the challenges of applying traditional financial supervisory regimes to novel blockchain technologies and the need for new, tailored approaches.