What Is the Legal Challenge in Enforcing Cross-Border Manipulation Penalties in Crypto?

The main challenge is jurisdictional reach. Crypto markets are global, but regulatory authority is national.

Enforcing a penalty against an individual or entity operating in a different country requires bilateral agreements, extradition treaties, or mutual legal assistance treaties (MLATs). If the perpetrator is pseudonymous and operates solely on decentralized protocols, tracing and enforcing the penalty across borders becomes nearly impossible without international regulatory coordination.