Arbitration preferred to litigation

Of the international terms sampled, 100% specified arbitration, not litigation, as the dispute
resolution mechanism. For region-specific terms, the proportion was approximately 52%,
with 41% choosing court litigation and 7% making no express choice.

APAC holds strong, UAE emerges

In their international terms, APAC laws and dispute resolution mechanisms are prevalent. Of the international terms sampled, 50% chose an APAC seat of arbitration, of which 40% chose Hong Kong and 10% chose Singapore. For administering institutions, 60% of the sampled international terms identify an APAC institution, namely HKIAC or SIAC. APAC’s popularity reflects the region’s history as an early adopter of crypto assets.

An important development is the emergence of the Abu Dhabi Global Market (ADGM), which in 2026 became the seat of arbitration specified in the international terms of a major exchange, Binance. This reflects the inroads that UAE jurisdictions and regulators are making in this sector.

More jurisdictional segmentation

Outside of their international terms of use, exchanges are implementing region-specific terms and local dispute resolution mechanisms. Of the 10 sampled exchanges, eight (80%) had some form of region-specific bespoke user terms, covering a total of 28 jurisdictions. Looking ahead, the regionalisation of user terms may increase as jurisdictional regulatory and legal differences crystallise.

Sole arbitrators put expertise under the spotlight

Interestingly, sole arbitrators are preferred to three-person tribunals. Of the sampled international terms of use, 70% specified a sole arbitrator, while only 30% specified a three-person tribunal. A sole arbitrator may manage the process more quickly and costeffectively than a larger tribunal, aligning with the crypto industry’s preference for speed. However, it puts a premium on the arbitrator’s sector knowledge.

Mandatory pre-arbitration steps are the standard

Escalation clauses were almost universally used, requiring parties to complete a series of stages before resorting to formal arbitration. 80% of sampled international user terms require claimants to complete at least one procedural step before making a claim, with 20% requiring two steps.

Widespread waiver of ‘class’ claims

The majority (70%) of sampled international terms included some form of waiver of class actions or consolidation of arbitrations.

Client Alert 2026-090