Consumer Protection
Consumer Protection in Tokenized Markets: From Disclosure to Custody to Redress
Tokenized assets require adapted consumer protection frameworks — disclosure rules designed for prospectuses don't fit token whitepapers, custody protections designed for brokerages don't fit self-custody, and redress mechanisms designed for regulated entities don't fit DeFi protocols.
Innovation vs. Consumer Protection: The Core Tension in Crypto Regulation
Every major crypto regulatory decision involves a fundamental tension: how much regulatory burden is acceptable to protect consumers, and how much protection must be sacrificed to enable innovation? The political economy of this tradeoff determines regulatory outcomes.
JFSA (Japan Financial Services Agency)
JFSA's dual regulatory mandate covering security tokens under FIEA and crypto exchanges plus stablecoins under PSA, within Japan's post-Mt. Gox consumer protection framework.
South Korea's Virtual Asset User Protection Act: Consumer-First Crypto Regulation
South Korea's Virtual Asset User Protection Act, effective July 2024, focuses on protecting retail investors — requiring exchanges to segregate customer assets, maintain insurance, and meet transparency standards.