This report provides a systematic analysis of the regulatory arbitration phenomenon as a rational market response to the fragmentation of national legal regimes. The research uncovers the mechanisms of “jurisdiction hopping,” where crypto projects migrate in search of legal certainty and stability rather than a complete lack of oversight. The author details the typology of recipient jurisdictions, operational fragmentation strategies for survival, and the risks of a “race to the bottom” where states lower protection standards to attract capital. Special emphasis is placed on the enforcement consequences, including jurisdictional conflicts and selective prosecution, as well as threats to investors arising from cycles of liberation and repression.
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