The objective of this Special Issue is Institutional Investor Behavior on Crypto Markets. International regulators expect national authorities to implement a regulatory framework for digital assets comparable to those that already exist for traditional finance. For national authorities, this means having and using the powers, tools and resources to regulate and oversee a growing market. Authorities should cooperate and coordinate with each other, at the national and international levels, to encourage consistency and knowledge sharing. Market operators (exchanges), service providers, exchanges and wallets, create effective risk management structures, as well as reliable mechanisms for collecting, storing, protecting and reporting data. Combining multiple functions within a single service provider can lead to complex risk profiles and conflicts of interest similar to those found in other financial conglomerates. In some jurisdictions, this may mean prohibiting the provision of certain combinations of services or functions within the same organization. The digital asset market may pose threats to the global financial stability. The scale, structural vulnerabilities and growing interconnectedness with the traditional financial system have become impossible to ignore. The main message remains unchanged: effective regulatory and supervisory systems at the national level should be based on the principle of ‘the same activity, the same risk, the same regulation’.

In October 2022, the Financial Stability Board (FSB) published a proposed framework and recommendations for international regulation of crypto assets and global stable coin agreements. The FSB identifies a number of problems related to the national application of crypto asset regulation and supervision.

The topic of interest include but are not limited to the following:

• existing regulatory powers and coverage, as well as gaps in application, including cross-border cooperation;

• risks associated with wallets and depository services, trading, lending and borrowing;

• widespread use of distributed ledger technology (DLT);

• the increase in earnings can expect with the acquisition of a valuable NFT asset;

• the average return on investment for NFTs with other investment options;

• the relationship between the popularity of a platform and the price of the NFT assets that are accepted on that platform and visual representation of SBT tokens.