How Do Jurisdictional Differences Affect the Choice of Venue for a Token Options Exchange?

The choice of venue is heavily influenced by the regulatory clarity and permissiveness of the jurisdiction. Exchanges seek jurisdictions that offer clear rules on token classification and derivative trading, often preferring those that classify tokens as commodities (like the US CFTC) rather than securities (like the SEC).

Tax laws, consumer protection, and the presence of a 'regulatory sandbox' also factor in, as they impact operational costs and market access.