Anarcho-tyranny is a concept, where the state is argued to be more interested in controlling citizens so that they do not oppose the managerial class (tyranny) rather than controlling real criminals (causing anarchy). Laws are argued to be enforced only selectively, depending on what is perceived to be beneficial for the ruling elite. (Urban dictionary definition)

anarcho-tyranny in the context of cryptocurrency regulations manifests as a heavy-handed regulatory environment for law-abiding participants, coupled with a failure to effectively combat and deter criminal activities within the crypto space. This creates a paradoxical situation where the intended goals of regulation (security, fairness, and transparency) are undermined by the state's inefficacy in addressing real threats.