International Regulatory Competition in Crypto Finance and Comparative Discussions

Initial coin offerings (ICOs), which became popular from 2017, introduced a new financial asset known as the ‘token’ or ‘cryptoasset’. Regulators in different jurisdictions have taken rather different approaches towards cryptoassets. The chapter focuses on this regulatory diversity. The aim is not to determine what the regulatory regime ought to be—i.e. whether cryptoassets are financial products or not and how they fit into existing financial products—but to question whether regulatory competition is reflected in such diversity and what flaws in regulatory thinking such competition reveals. As Sect. 2 explains, the characteristics of cryptoassets do not easily cohere with established financial product categories that are subject to regulation. This has given rise to differing views on the appropriate regulatory policy to adopt. The chapter was finalised in late 2022 before the official publication of the European Markets in Crypto-assets Regulation and the reforms announced in the UK in 2023.