Blockchain technology faces significant legal and regulatory challenges due to its decentralized and borderless nature. Issues include the classification of digital assets (e.g., cryptocurrencies versus securities), compliance with anti-money laundering (AML) and know your customer (KYC) regulations, and intellectual property rights for blockchain innovations. Different jurisdictions may impose varying regulations, leading to legal uncertainties for businesses operating in multiple regions. Moreover, the pseudonymous nature of blockchain transactions complicates enforcement of existing laws. As governments attempt to create regulatory frameworks, the balance between fostering innovation and protecting consumers remains contentious.