Jurisdictional Reach

Definition ∞ Jurisdictional Reach refers to the geographical and legal extent of authority that a government, regulator, or legal system possesses. It defines where laws and regulations apply and over whom they can be enforced. In the context of digital assets, this concept determines which national or regional laws govern cross-border crypto activities.
Context ∞ The borderless nature of digital assets presents significant challenges to traditional notions of jurisdictional reach. Regulators globally grapple with applying national laws to decentralized protocols and international transactions. This often leads to regulatory arbitrage and calls for greater international cooperation to establish consistent frameworks that account for the global scope of digital asset markets.