# Regulatory Challenges

**Risk:**

Evolving regulations in the blockchain and cryptocurrency sectors may impact the legality or functionality of the project in certain jurisdictions.

**Mitigation:**

* **Compliance Framework**: The project will operate within the legal frameworks of **crypto-friendly jurisdictions**, and all activities will comply with applicable regulations. HyperSPAC3 is consulting with experienced legal advisors to ensure compliance across all operating territories.
* **DAO Structuring**: Over time, transitioning to a **DAO model** reduces centralized liability and aligns with regulatory trends favoring decentralized governance.
* **Diversified Strategy**: Treasury and asset allocation strategies will prioritize jurisdictions with clear crypto regulatory frameworks.
