# kaal:claim:4957318-002

**Claim.** Overlapping or contradictory regulation raises the risk of selective enforcement and legal arbitrage, because entities that cannot be expected to comply with everything can instead exploit the gaps and inconsistencies to their advantage.

**Type.** mechanism  **Support.** argued

**Holds when.**

- where regulated parties cannot readily understand the full body of applicable rules

**Source quote.**

> When individuals and businesses struggle to understand and adhere to overlapping or contradictory regulations, the risk of selective enforcement and legal arbitrage rises, where entities exploit legal gaps and inconsistencies to their advantage.

**From.** Wulf A. Kaal, *The Future of Law - Dynamic Web3 Governance* (2024), Introduction, page 3

**Cite as.** Wulf A. Kaal, The Future of Law - Dynamic Web3 Governance (2024). SSRN: https://ssrn.com/abstract=4957318

**Verify.** sha256 of source PDF `137fb77eb82111a85f0ab5581926f762a7414ae84aaf3d56e8299db670e0e0c1` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202024%20-%20The%20Future%20of%20Law%20-%20Dynamic%20Web3%20Governance.pdf

**Topics.** law-and-legal-systems, compliance

**Keywords.** legal-arbitrage, selective-enforcement, regulatory-complexity, rule-of-law, compliance

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