The Dynamics of Technology-Related Legal Regulatory Escape: Corporate Strategies, Systemic Enablers, and the Governance Imperative

Naergesha Maitituerxun

doi:10.6981/FEM.202511_6(11).0005

Authors

Naergesha Maitituerxun

DOI:

https://doi.org/10.6981/FEM.202511_6(11).0005

Keywords:

Technology-related Legal Regulatory Escape; Corporate Strategies; Regulatory Arbitrage; Corporate Tax Avoidance; Legislative Lag; Governance.

Abstract

This paper examines the cause of technology-related legal regulatory escape and argues that while corporate strategies are a key catalyst, effective solutions must address the broader ecosystem of systemic enablers and technological affordances. Moving beyond a purely diagnostic stance, the analysis employs a three-dimensional framework-encompassing legal, economic, and technological aspects-to not only dissect how firms exploit regulatory gaps but also to identify precise leverage points for intervention. Through case studies of stablecoin arbitrage, AI governance, and transfer pricing, the paper reveals the complexity of regulatory escape and translates these insights into a proactive governance agenda. The discussion culminates in a series of concrete policy recommendations, including mandatory algorithmic audits, the deployment of RegTech, harmonization of international standards, and the establishment of data-trust frameworks, providing a roadmap to rebuild accountability in the face of rapidly evolving technologies.

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