SROs develop and enforce regulations The establishment of a regulatory framework in the dynamic realm of virtual digital assets (VDA) has sparked intense deliberation. As VDAs and web3 continue to gain prominence, along with the increasing popularity of decentralized finance (DeFi) platforms, the urgency to institute effective regulations has amplified. One approach, which has exhibited success in various sectors, involves the implementation of Self-Regulatory Organizations (SROs). SROs have demonstrated their efficacy in upholding market integrity, safeguarding stakeholders, and fostering transparency. By examining the accomplishments of Japan’s SRO for crypto assets and the SROs governing the broadcasting industry in India , we can discern the pivotal role an SRO could play as an initial stride towards regulating the VDA sector. SROs, as their name implies, are organizations vested with regulatory authority over specific industries or sectors. Through collaboration with governmental bodies, SROs assume a vital role in establishing and upholding industry standards, rules, and regulations. Their primary objective is to ensure adherence to these regulations, preserve market integrity, and safeguard the interests of stakeholders. SROs operate on the fundamental belief that industry participants possess the most comprehensive understanding of the intricacies and dynamics within their respective sectors, placing them in […]
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