Global Regulatory Gaps

Definition ∞ Global regulatory gaps refer to areas where existing laws and regulations fail to adequately cover or address the unique characteristics and risks associated with digital assets across different countries. These voids in legal frameworks can lead to regulatory arbitrage, consumer protection issues, and opportunities for illicit activities. They pose significant challenges to ensuring market integrity and financial stability on an international scale. Such gaps hinder consistent oversight.
Context ∞ Addressing global regulatory gaps is a top priority for international financial bodies and national governments alike, as the digital asset market continues to expand. Discussions often revolve around how to adapt traditional financial regulations or create new ones tailored to blockchain technology. A critical future development involves achieving greater cross-border cooperation to establish comprehensive and harmonized regulatory standards.