But in many jurisdictions the regulatory framework is far from complete. Also, given that cryptoassets are global in scope and not confined by borders, an emerging problem is the gaps between regulatory regimes. Different jurisdictions have adopted different regulatory approaches, depending on how they have defined these assets.
When a new product is launched, is it classified as a payment instrument, a security, a commodity or none of the above? Should crypto exchanges be called banks, financial market infrastructures or something else? These classifications differ across jurisdictions and in some cases remain nebulous. Beyond these differences in classification, the regulatory treatment of these assets differs.