Skip to main content

Regulatory Hurdles

Definition

Regulatory hurdles are obstacles or challenges presented by government rules and legal frameworks that digital asset projects must navigate. These challenges include obtaining necessary licenses, complying with anti-money laundering (AML) and know-your-customer (KYC) regulations, and addressing securities classification issues for tokens. The absence of clear, consistent global regulations often creates uncertainty, hindering innovation and institutional adoption. Overcoming these hurdles frequently involves significant legal and compliance costs, influencing the operational strategies and market entry of cryptocurrency businesses. They represent a key barrier to mainstream integration.