Jurisdictional arbitrage
Choosing a legal or regulatory environment that better fits a crypto business, protocol, or personal activity.
- Also known as
- regulatory arbitragepolicy competition
Jurisdictional arbitrage means structuring activity around differences in laws, taxes, licensing, enforcement, and regulatory clarity. Crypto teams may choose where to incorporate, hire, host infrastructure, or offer services based on those differences.
Jurisdictional arbitrage can encourage policy competition and innovation, but it does not eliminate legal risk. Authorities may still act when services target residents, handle local payments, or violate sanctions and AML rules.
Related terms
4 linkedExplore connected entries beyond the alphabetical index.
Anti-Money Laundering
→Laws and processes that aim to prevent illicit funds from being disguised as legitimate.
Cryptocurrency Exchange
→A cryptocurrency exchange is a platform for buying, selling, or trading digital assets through crypto or fiat markets.
Decentralized Exchange
→A decentralized exchange (DEX) lets users trade digital assets from their wallets through smart contracts or peer-to-peer settlement.
Decentralization
→Decentralization distributes control across many participants, reducing single points of failure, censorship, or unilateral rule changes.
All terms and definitions may update as the Cryptionary improves.
