Definition ∞ A Legal Perimeter defines the specific boundaries within which particular laws, regulations, or jurisdictional authorities exercise their oversight. It delineates the scope of legal applicability for entities, activities, or assets. This boundary is critical for determining regulatory obligations and potential liabilities.
Context ∞ The concept of a legal perimeter is highly relevant in the evolving digital asset landscape, as regulators strive to classify and supervise crypto activities. News often covers debates and rulings that aim to establish clearer perimeters for various digital assets, influencing where crypto businesses choose to operate. Uncertainty regarding these boundaries can pose significant challenges for market participants.
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