Extraterritorial Scope

Definition ∞ Extraterritorial scope refers to the legal authority of a country’s laws and regulations extending beyond its national borders. In the context of digital assets, this means a jurisdiction may seek to apply its rules to entities or transactions occurring outside its physical territory. This principle addresses the global nature of blockchain activities.
Context ∞ The extraterritorial scope of regulations is a significant and often debated topic in crypto news, particularly as governments grapple with overseeing a borderless digital asset market. This jurisdictional reach presents considerable challenges for international compliance and regulatory harmonization. Global platforms must consider laws from multiple nations.