National Implementation Gaps

Definition ∞ National implementation gaps refer to discrepancies or deficiencies in how individual countries adopt and enforce international standards or recommendations. These gaps arise when national laws or regulatory practices do not fully align with global guidelines, such as those set for anti-money laundering or financial stability. Such inconsistencies can create opportunities for regulatory arbitrage and hinder effective global governance. They often concern the application of crypto asset regulations.
Context ∞ News reports often highlight national implementation gaps in the context of global efforts to regulate crypto assets, for example, the FATF travel rule. These differences can lead to uneven playing fields for businesses and create safe havens for illicit activities. International organizations continuously press for greater harmonization and more consistent national application of agreed-upon standards.