Regulation of Digital Assets in a Shifting Global Landscape

Digital assets are moving from a standalone market into the infrastructure of finance. Their significance increasingly lies beyond the value of the asset class itself, in their potential to change how money, securities, and collateral move through the financial system. As this integration advances, regulation also takes on wider strategic significance: digital money and settlement networks can influence currency use, capital flows, sanctions enforcement, market competitiveness, and the degree of influence jurisdictions retain over financial activity conducted through global digital networks.

The World Economic Forum and BCG have developed a regulatory playbook for jurisdictions navigating this transition. Its nine dimensions define the conditions required for digital finance to function safely and at institutional scale:

Core Market Rules
  • Regulatory perimeter, classification, and accountability
  • Legal certainty and enforceability
  • Custody and client asset protection
  • Infrastructure
Financial System Integration
  • Digital money and settlement assets
  • Monetary sovereignty and financial stability
  • Prudential, balance sheet, and collateral treatment
Market Safeguards
  • Financial crime and sanctions
  • Market integrity and investor protection

The framework shifts the regulatory question from whether a product is regulated to whether the surrounding financial system can support institutional use.

There is no single regulatory sequence for building a credible institutional market. Jurisdictions start from different legal systems, financial structures, policy objectives, and supervisory capabilities. Authorities can use the playbook to identify the most material risks and constraints, sequence priorities as adoption develops, and determine where existing rules are sufficient or need to adapt. Cross-border growth will depend less on identical rules than on sufficient trust in regulatory outcomes, alongside deliberate choices about where international integration creates value and where stronger domestic or regional control remains important.

Turning the regulatory framework into practice requires more than rule-making. Common standards are needed to avoid fragmented interpretation, comparable activities should receive comparable treatment across regulatory perimeters, and supervisory expectations must evolve with evidence from real-world use. Industry and regulators need to work together to make that happen.

If regulation makes digital asset markets viable at scale, value creation and competitive advantage will shift across the sector. Firms that benefit from today’s frictions will face pressure even without launching digital asset products. Advantage will increasingly rest on scarce capabilities, such as liquidity, risk bearing, trusted control, distribution, and market access. Traditional institutions and digital-native firms will compete more directly across the same parts of the value chain.

Meet the BCG Project Advisors

Matteo Coppola

Managing Director & Senior Partner
Milan

Assia Gardiner

Partner and Associate Director, Risk & Regulatory Compliance in FI
Zurich

Christian Schmid

Managing Director & Senior Partner
Zurich

Bernhard Kronfellner

Partner and Associate Director
Vienna

Dominik Stuetz

Project Leader
Zurich

Related Project Content

About Digital Assets
This global initiative examines the evolving intersection of digital asset regulation and geoeconomics. It engages a multistakeholder community to examine how the rapidly evolving geopolitical and geoeconomic landscape is influencing regulatory developments for digital assets, and vice versa. Further, the initiative aims to provide policymakers and industry leaders with a framework to understand the implications of digital asset adoption on financial sovereignty and the future of the international financial system.

Related Topics