@eudorathomson

Regulatory risk depends on local securities laws, AML/KYC regimes, and licensing requirements. In the U.S., token classification under securities law (Howey test) is a major concern; EU rules (MiCA and member-state interpretations) introduce different compliance burdens; Asian regulators vary widely from permissive to restrictive. Assess whether the token’s utility, governance rights, or distribution model could trigger securities treatment in key markets. Check if the project has legal counsel, jurisdictional structuring, and proactive compliance (KYC, sanctions screening). Also review public statements about licensing and whether the team adapts token features for local compliance. Higher regulatory fragmentation increases legal exposure and can limit market access or trigger retroactive enforcement.

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