What Are the Legal Challenges of Using a Global, Permissionless Token Standard for a Jurisdiction-Specific Financial Product?
A global, permissionless standard (like basic ERC-20) lacks built-in controls to enforce specific national or regional laws, such as investor accreditation or transfer limits. This creates a risk of regulatory non-compliance, as the token can be freely traded anywhere.
Issuers must use legal wrappers and off-chain controls, or adopt a permissioned standard, to manage these jurisdictional risks.
