Navigating regulatory risks in cryptocurrency airdrops requires a proactive approach. First, ensure compliance with local laws by researching jurisdictions’ stance on airdrops—some classify them as taxable income, while others view them as securities. Engage legal experts to interpret regulations like the U.S. SEC’s securities framework or the EU’s MiCA rules. Transparency is key: clearly disclose airdrop terms to participants, avoiding misleading claims that could trigger enforcement. Implement KYC/AML checks to mitigate money laundering risks, especially in high-value distributions. Assess the token’s utility—regulators often scrutinize whether it resembles an investment contract. Stay agile by monitoring evolving policies, as global standards remain fluid. Finally, maintain records of distributions and tax obligations to defend against audits. By prioritizing compliance and clarity, projects can reduce legal exposure while fostering trust in the crypto ecosystem.