The near-simultaneous crackdown on digital assets exchange Binance by multiple global regulators demonstrates the struggle that watchdogs face in tackling innovation by the rulebook, particularly in the murky world of cryptocurrencies.

Binance, which is incorporated in the Cayman Islands but has previously operated from bases in China, Japan and Malta, has come under intense scrutiny this summer as rulemakers tussle with how to ensure that the firm is acting under the appropriate authorisations.