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Offshore Markets

Definition

Offshore markets are financial markets operating outside the jurisdiction of domestic regulatory bodies. In the digital asset realm, offshore markets pertain to cryptocurrency exchanges and trading platforms domiciled in jurisdictions with less stringent regulatory oversight compared to major financial centers. These markets often offer different trading products, leverage options, and privacy features that may not be available in more regulated environments. Participants utilize these markets for various reasons, including regulatory arbitrage or access to specific financial instruments.