Regulatory shopping describes the practice where businesses strategically choose jurisdictions with less stringent or more favorable regulatory environments to establish their operations. In the digital asset sector, firms might seek countries with lenient licensing requirements or lower compliance costs for their cryptocurrency exchanges or token offerings. This behavior can lead to a race to the bottom in regulatory standards, potentially increasing risks for consumers and market integrity. It often exploits differences in international legal frameworks.
Context
The phenomenon of regulatory shopping is a significant concern for international financial regulators aiming to establish a consistent and robust framework for digital assets. Discussions often highlight the need for global cooperation and harmonization of rules to prevent firms from evading oversight. Future efforts will likely focus on developing common standards and information-sharing agreements among jurisdictions to create a more level and secure global digital asset market.
We use cookies to personalize content and marketing, and to analyze our traffic. This helps us maintain the quality of our free resources. manage your preferences below.
Detailed Cookie Preferences
This helps support our free resources through personalized marketing efforts and promotions.
Analytics cookies help us understand how visitors interact with our website, improving user experience and website performance.
Personalization cookies enable us to customize the content and features of our site based on your interactions, offering a more tailored experience.
