Fragmented Rules

Definition ∞ Fragmented rules describe a situation where diverse, inconsistent, or uncoordinated regulatory frameworks apply to digital assets across different jurisdictions or market segments. This lack of uniformity creates operational complexities, increases compliance burdens, and can hinder market development. Such disjointed regulations often lead to regulatory arbitrage and uncertainty for businesses. It represents a significant barrier to global market cohesion.
Context ∞ The existence of fragmented rules is a major challenge for the global digital asset industry, impeding innovation and cross-border operations. International bodies are actively working to address these disparities by promoting harmonized regulatory approaches. A critical future development involves achieving greater international consensus on a unified regulatory framework for digital assets to foster a more predictable environment.