The digital economy is reshaping international trade and transactions, necessitating updated legal and policy frameworks for appropriate jurisdiction and governance. The borderless nature of digital trade introduces complexities around applicable laws, taxes, responsibilities, and liabilities. This paper reviews current debates on regulating digital spaces and reimagining digital borders to support equitable governance. Doctrinal and comparative analyses examine jurisdictional complexities. Grounded Theory assesses regulatory initiatives. Ambiguous jurisdiction enables large platforms to circumvent laws. Prescriptive control risks stifling innovation. Blending scope-based rules with effects-based standards can balance control and openness. Principles-based extraterritorial applications of law aligned to global accords, demarcating platforms' responsibilities based on risk levels and impacts are suggested. It calls for cooperation advancing rights and fairness. The exponential growth of the digital economy, fueled by technological advancements, connectivity, and new business models, has profoundly transformed international trade and transactions. However, the increasing virtualization of economic activities has introduced complex jurisdictional and regulatory challenges. Existing inter-state structures struggle to keep pace with the changes introduced by global digitization and connectivity. Regulatory ambiguity, coupled with the concentration of power in platform giants, has enabled detrimental outcomes like large-scale tax avoidance. Attempts to unilaterally address such gaps introduce further tensions as expansive extraterritorial jurisdiction claims by powerful states threaten damaging tariff retaliations. These challenges underscore the need for urgent cooperative solutions aligned to collective rights and welfare. However, constructing appropriate multilateral platforms is rife with geopolitical contentions, power struggles, and clashing visions of internet governance. The paper examines pathways towards ethical, equitable frameworks balancing jurisdiction, governance, and rights in an interconnected economy still dependent on Westphalian principles. Key concepts analyzed include jurisdictional sovereignty, governance regimes, rights frameworks, international law, and geo-economic equilibriums. The study combines doctrinal analysis of legal complexities with case studies assessing recent regulatory and taxation initiatives targeting technology firms. The paper suggests collaborative rule-setting modalities like multi-stakeholder dialogues for norm building. It advocates for principles-based extraterritoriality in law application, balancing control with innovation across digital borders. Scope-based rules demarcating platform-specific duties per their societal impacts alongside effects-based liability standards emerge as potential middle paths. Suggestive models advocate collaborative rule-setting modalities like multi-stakeholder dialogues for norm building. The findings align with the core research questions assessing potential for re-envisioning digital borders supporting regulatory clarity. Proposed approaches blending scope and effects-based stipulations offer standardization pathways. Emphasized collaborative modalities provide modalities fostering stakeholder inclusion when systematizing liability and taxation norms digitally. Suggested extraterritoriality mechanisms enable mitigating concentration risks by allowing localized policy autonomy simultaneously. However, insights also reveal difficulties in constructing international conventions given enforcement dependencies on voluntary state compliance. Power dynamics and data sovereignty reluctance introduce hurdles for global accords. Addressing risks of capital flight from unilateralThe digital economy is reshaping international trade and transactions, necessitating updated legal and policy frameworks for appropriate jurisdiction and governance. The borderless nature of digital trade introduces complexities around applicable laws, taxes, responsibilities, and liabilities. This paper reviews current debates on regulating digital spaces and reimagining digital borders to support equitable governance. Doctrinal and comparative analyses examine jurisdictional complexities. Grounded Theory assesses regulatory initiatives. Ambiguous jurisdiction enables large platforms to circumvent laws. Prescriptive control risks stifling innovation. Blending scope-based rules with effects-based standards can balance control and openness. Principles-based extraterritorial applications of law aligned to global accords, demarcating platforms' responsibilities based on risk levels and impacts are suggested. It calls for cooperation advancing rights and fairness. The exponential growth of the digital economy, fueled by technological advancements, connectivity, and new business models, has profoundly transformed international trade and transactions. However, the increasing virtualization of economic activities has introduced complex jurisdictional and regulatory challenges. Existing inter-state structures struggle to keep pace with the changes introduced by global digitization and connectivity. Regulatory ambiguity, coupled with the concentration of power in platform giants, has enabled detrimental outcomes like large-scale tax avoidance. Attempts to unilaterally address such gaps introduce further tensions as expansive extraterritorial jurisdiction claims by powerful states threaten damaging tariff retaliations. These challenges underscore the need for urgent cooperative solutions aligned to collective rights and welfare. However, constructing appropriate multilateral platforms is rife with geopolitical contentions, power struggles, and clashing visions of internet governance. The paper examines pathways towards ethical, equitable frameworks balancing jurisdiction, governance, and rights in an interconnected economy still dependent on Westphalian principles. Key concepts analyzed include jurisdictional sovereignty, governance regimes, rights frameworks, international law, and geo-economic equilibriums. The study combines doctrinal analysis of legal complexities with case studies assessing recent regulatory and taxation initiatives targeting technology firms. The paper suggests collaborative rule-setting modalities like multi-stakeholder dialogues for norm building. It advocates for principles-based extraterritoriality in law application, balancing control with innovation across digital borders. Scope-based rules demarcating platform-specific duties per their societal impacts alongside effects-based liability standards emerge as potential middle paths. Suggestive models advocate collaborative rule-setting modalities like multi-stakeholder dialogues for norm building. The findings align with the core research questions assessing potential for re-envisioning digital borders supporting regulatory clarity. Proposed approaches blending scope and effects-based stipulations offer standardization pathways. Emphasized collaborative modalities provide modalities fostering stakeholder inclusion when systematizing liability and taxation norms digitally. Suggested extraterritoriality mechanisms enable mitigating concentration risks by allowing localized policy autonomy simultaneously. However, insights also reveal difficulties in constructing international conventions given enforcement dependencies on voluntary state compliance. Power dynamics and data sovereignty reluctance introduce hurdles for global accords. Addressing risks of capital flight from unilateral