Law & Policy

SocialFi’s hybrid onchain/offchain architecture and wallet-based identity face strict regulations in the EU, moderate fragmentation in the US, and permissive frameworks in LATAM.

From user onboarding (KYC/AML) and data protection (GDPR) to crypto compliance (MiCAR/DORA) and bots oversight (AI Act).

MiCaR licensing costs and reserve requirements, which favor institutions over communities, force SocialFi creator coins off EU exchanges due to restrictive KYC rules.

LATAM’s securities law flexibility and the SEC’s enforcement ambiguity enable viable 50%/5-year vested creator models.