AI tokens intersect with various regulatory frameworks based on functionality. If classified as a security due to profit expectations, registration or exemptions like Reg D in the US may be required. Financial use cases such as lending or AI-powered trading might need money transmitter licenses or similar approvals. Privacy laws like GDPR in Europe are critical if your AI processes personal data ensure user consent, data minimization, and deletion rights. AML and KYC measures are advisable, especially for token sales or DeFi platforms. Consumer protection may require transparency in AI decisions and risks. Engage legal counsel with crypto and AI token expertise early to navigate these issues. Staying compliant builds trust, avoids fines, and ensures your AI token operates globally without regulatory challenges.