Degen

Regulatory Challenges Facing High-Risk Crypto Projects.

High-risk crypto projects, including Degen tokens, face significant regulatory challenges due to their speculative nature. Lack of Clarity: Ambiguous regulations in many jurisdictions create uncertainty, discouraging innovation. Fraud and Scams: The prevalence of rug pulls and pump-and-dump schemes invites scrutiny from regulators. Compliance Issues: Many projects fail to meet anti-money laundering (AML) and know-your-customer (KYC) standards, increasing legal risks. Taxation: Unclear tax policies for crypto gains complicate investor obligations. Securities Classification: Some tokens risk being classified as securities, requiring compliance with stringent laws. Addressing these challenges demands greater transparency, legal consultation, and adherence to emerging regulatory frameworks for long-term sustainability.