Overseas Affiliates

Definition ∞ Overseas affiliates are subsidiary companies or entities that are controlled by a parent organization but operate in different countries. In the context of digital assets, these often refer to branches or related businesses of a crypto company established in foreign jurisdictions. They allow for global market access, regulatory arbitrage, or diversification of operational risks. Managing these entities involves navigating diverse legal and economic environments.
Context ∞ The operations of overseas affiliates frequently appear in news related to international regulatory arbitrage, tax strategies, and global market expansion for crypto firms. Regulators are increasingly scrutinizing the relationships and transactions between parent companies and their foreign branches to prevent illicit activities. Their legal and operational structures are a key consideration for compliance and market reach.