Analysis of legal risks when launching a crypto startup in 2025

For startups in the crypto industry, 2025 brings significant changes to the regulatory environment. If you are planning to launch a crypto platform, token product, or DeFi service, it is important to understand the key legal risks to avoid problems with regulators, banks, and investors.

Licensing — MiCA and other requirements

With MiCA finally coming into force in EU countries in December 2024, launching crypto services requires not just a competent structure, but a full CASP license. This entails significant costs and complex bureaucratic procedures. Without a license, you risk not only losing access to the market but also incurring heavy fines :contentReference[oaicite:0]{index=0}.

AML, KYC, and the “Travel Rule”

Strict requirements for anti-money laundering and customer identification have been tightened. Cross-border transactions must be accompanied by the transfer of sender and recipient data, and transactions with non-custodial wallets require proof of ownership :contentReference[oaicite:1]{index=1}.

GDPR: blockchain vs. data protection

The GDPR imposes strict requirements for the protection of personal data. Since blockchain is immutable and decentralized, the deletion of information (“the right to be forgotten”) becomes virtually impossible. This creates a constant tension between innovation and user rights :contentReference[oaicite:2]{index=2}.

Token classification and ICO regulation

Incorrect classification of tokens, such as “utility” versus “security,” can lead to a token being classified as a security—and thus to legal claims. According to 2025 data, almost half of ICOs did not meet disclosure requirements, resulting in significant fines :contentReference[oaicite:3]{index=3}.

Smart contracts and the need for auditing

Errors in smart contracts have led to massive financial losses and a loss of trust. Code audits are now mandatory: they are used to identify vulnerabilities before launch. Regulators are starting to include audit findings in licensing requirements :contentReference[oaicite:4]{index=4}.

Cyber resilience — the most important part of DORA

The EU has introduced DORA — a cybersecurity regulation for financial institutions, including crypto projects. This means mandatory measures for resilience and protection against cyber shocks :contentReference[oaicite:5]{index=5}.

Enforcement — real-world examples

The application of regulatory standards is already evident in practice: multi-million dollar fines from the SEC and CFTC (Binance, Kucoin) or bans on crypto fintechs that did not comply with AML/KYC. This is not a hypothetical threat — these are real cases :contentReference[oaicite:6]{index=6}.

Recommendations for crypto startups

• Bring lawyers and compliance specialists onto your team right away
• Work out the token legal structure before launch
• Implement automated AML/KYC and smart contract auditing
• Assess GDPR risks and jurisdictions for KYC data
• Plan for regulatory developments: MiCA, CARF, DORA

FAQ

Do I need to comply with MiCA even if my startup is outside the EU?

Yes, if you intend to enter the European market or work with European users, a license is mandatory.

What are the prospects for resolving data issues in blockchain?

There is no direct solution at this time. Some projects are experimenting with off-chain storage and ZK technologies.

How can you minimize taxes and remain compliant?

A legal structure, asset separation, and the right jurisdiction will help reduce risks and tax burdens.

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