Definition ∞ Policy fragmentation refers to a situation where regulations or guidelines concerning a specific domain are inconsistent, conflicting, or incomplete across different jurisdictions or governmental bodies. This lack of a unified approach creates uncertainty and operational challenges for entities operating within that domain. It can hinder growth and compliance efforts.
Context ∞ In the digital asset space, policy fragmentation is a significant and frequently reported issue, as various countries and regions develop disparate regulatory frameworks for cryptocurrencies and blockchain technology. News often highlights the difficulties this presents for businesses seeking to operate globally and for innovators developing new digital assets. Efforts towards international regulatory coordination are a key discussion point, aiming to reduce the complexities arising from fragmented policies.
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