When privacy and AML laws conflict, Crypto projects’ impossible choice

,” Rikka founder Charlyn Ho offered insight on one of the most challenging issues in the modern digital asset ecosystem: the growing conflict between privacy protections and anti-money laundering (AML) obligations.

In the article, Charlyn discusses the increasingly complex landscape that developers, platforms, and institutions must navigate as global regulators apply frameworks never designed with decentralized technologies in mind.

As Charlyn notes, regulators are applying existing law, which at times leaves crypto developers with seemingly impossible design constraints. Until legal frameworks evolve, developers may find themselves balancing tensions between user privacy, regulatory transparency, and technical immutability that have no perfect answers today.

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In a Cointelegraph Q&A, Rikka founder Charlyn Ho explores the tension between data privacy and AML laws in crypto — and the difficult choices projects must navigate.

Privacy vs. AML Laws in Crypto | Charlyn Ho | Rikka Law

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Rikka Law: Charlyn Ho Discusses the Collision Between Privacy and AML Laws in Crypto With Cointelegraph

Charlyn Ho Discusses the Collision Between Privacy and AML Laws in Crypto with Cointelegraph

Outside counsel handles specific matters when you call them. A fractional GC is embedded in your business on an ongoing basis, attending key meetings, advising on day-to-day decisions, and building institutional knowledge over time. You get senior-level legal judgment without the cost of a full-time hire. Rikka provides fractional GC services that scale with your business and cover the full range of your legal needs.

Legal Staff Augmentation Services | Rikka Law

When legal questions are coming up faster than you can send individual matters out. When you need someone who knows your business, not just your file. When you are approaching a fundraise, an acquisition, or an 

 push and need consistent legal support across multiple workstreams at once. Rikka helps companies identify the right model and transition smoothly between stages.

It means a Rikka attorney works alongside your team on a defined schedule, integrating directly into your workflows rather than operating as an outside vendor. They know your contracts, your clients, your risk tolerance, and your business goals. When a legal question comes up in a product meeting or a sales negotiation, the answer is already in the room.

We place experienced legal professionals directly within your organization for a defined period or on an ongoing flexible basis. This is different from a staffing agency: Rikka attorneys bring the same caliber and training as a top-tier firm, and they are supported by the full Rikka team behind them. You get embedded expertise without the overhead of a full-time hire.

Yes. This is one of the most common ways companies engage us for human capital management. We provide surge capacity for specific transactions or time-sensitive initiatives, scaling legal support up quickly without the lag time of onboarding outside counsel from scratch.

A staffing firm places bodies. Rikka places experienced legal professionals backed by a team with deep expertise in technology, 

, and commercial contracts. Our embedded attorneys are not generalists filling a seat. They bring specialized knowledge in exactly the areas where fast-growing technology companies need it most.

 is built for in-house counsel, privacy officers, and legal professionals who need practical, hands-on training in 

, and emerging technology law. If you already have the credential but find yourself in rooms where the legal questions are moving faster than your training, Rikka Academy bridges that gap.

Rikka Academy | Legal Education for AI & Tech Law

 with Business Insight, Analyzing AI Terms in Commercial Contracts, and Decoding California's ADMT Regulations. Additional courses on contract negotiation and commercial practice are coming soon. All courses are designed around real-world application, not test prep.

California's Automated Decision-Making Technology regulations govern how companies use AI to make consequential decisions about consumers. They apply to a wide range of 

 including hiring, lending, housing, and healthcare, and impose notice, opt-out, and impact assessment requirements. Rikka Academy's course gives lawyers a practical framework for advising clients on compliance.

 teaches you to do the job. The courses focus on practical application: how to actually draft 

, analyze vendor terms, and advise a product team on compliance. Not how to memorize a framework for an exam.

Yes. Rikka offers corporate training programs for legal teams and in-house counsel. Contact us at 

 to discuss a program tailored to your team.

Earlier than you think. The decisions that are hardest to fix later — entity structure, founder equity splits, IP assignment, early contracts — are made in the first 90 days. Getting them wrong does not hurt immediately. It shows up during your Series A due diligence, your first 

 negotiation, or your acquisition. Rikka works with founders at the formation stage to build a legal foundation that holds up as you scale.

Startup Legal Services & Formation | Rikka Law

For most venture-backed tech companies, a Delaware C-Corp is the standard answer. But the right structure depends on your funding strategy, your co-founder situation, your revenue model, and whether you are pursuing government contracts. Rikka walks you through the tradeoffs before you file anything, so you are not restructuring at Series A.

At minimum: equity splits and vesting schedules, IP assignment so the company owns what you build, decision-making authority, and what happens if a founder leaves. Most co-founder disputes are not about personality. They are about terms that were never written down. Rikka drafts co-founder agreements that prevent the most common disputes before they start.

A SAFE (Simple Agreement for Future Equity) is a financing instrument that lets investors put money in now and convert to equity at a future round. It is faster and cheaper than a priced round, which is why it has become the standard for pre-seed and seed-stage companies. Rikka reviews and negotiates SAFE terms, post-money caps, and MFN provisions so you understand what you are giving up before you sign.

Three things matter most: IP assignment agreements with every founder and contractor, work-for-hire provisions in all development contracts, and a clear policy on what employees create on company time. Most 

 trace back to one of these being missing. Rikka builds the IP foundation at formation so there are no surprises during due diligence.

 handles foundational, standardized legal documents at a fixed price with fast turnaround. It is built for early-stage companies that need clean, lawyer-reviewed documents without the cost of a full engagement. Rikka handles the complex, high-stakes work: sophisticated equity structures, enterprise contracts, regulatory compliance, and strategic counsel as you scale. Most growing companies use both at different stages.

We draft, review, and negotiate the full range of technology and commercial agreements: SaaS agreements, API terms, data licenses, vendor contracts, IP licensing, MSAs, EULAs, 

, Standard Contractual Clauses, Business Associate Agreements, and M&A data provisions. If it touches technology, data, or AI, we have negotiated it.

Technology Transactions Lawyer | Rikka Law Group

Most technology companies do not find out their contracts have gaps until a deal falls apart or an enterprise client raises a red flag during due diligence. Rikka conducts contract stack reviews that identify hidden exposure (IP ownership gaps, uncapped liability, missing data protection provisions) before they become expensive problems.

Outside counsel handles specific matters as they arise. A 

 is embedded in your business, attending key meetings, advising on day-to-day decisions, and building institutional knowledge over time. Rikka provides both, depending on what your business actually needs at each stage of growth.

privacy, cybersecurity, and data protection risks

 before they derail a deal. We review data handling practices, assess regulatory exposure, flag contractual gaps, and advise on how to structure data provisions in the transaction documents.

Yes. We build contract frameworks that sales and product teams can actually use: standard templates, fallback positions, and redline guidance that keeps deals moving without requiring legal review on every line.

We advise on the full range of U.S. and global privacy frameworks: GDPR, CCPA and state comprehensive privacy laws, HIPAA, COPPA, GLBA, BIPA, and 

. We also track state-level developments so you are not caught off guard when a new law takes effect. If your product touches personal data in any form, we can map your obligations across every jurisdiction where you operate.

Privacy & Cybersecurity Legal Services | Rikka Law

An audit tells you where you stand. A privacy program tells you where you are going and keeps you there. Rikka helps companies do both: we assess your current data practices against applicable law, then build the governance framework, policies, and internal controls to maintain compliance as regulations and your product evolve.

Speed and sequencing matter more than most companies realize until it is too late. Rikka helps clients prepare before a breach happens through incident response planning and tabletop exercises, and we provide hands-on guidance when an incident occurs: managing regulatory notifications, coordinating with forensic teams, advising on stakeholder communications, and navigating any follow-on enforcement or litigation risk.

Data is often the most valuable and the most legally exposed asset in a 

. Rikka conducts privacy due diligence for both buyers and sellers: reviewing data handling practices, flagging regulatory gaps, advising on privacy representations and warranties, and negotiating data protection provisions through closing. We help you understand what you are buying or selling before you sign.

Yes, and the cost of getting it wrong compounds over time. Privacy policies that do not match your actual data practices are one of the most common FTC enforcement targets. Rikka drafts policies that reflect how your product actually works and positions your company to scale without having to rebuild your compliance stack when the first enterprise client asks for a data protection addendum.

AI governance is the framework of policies, controls, and accountability structures that determine how your company develops, deploys, and monitors AI systems. Without it, you are making product decisions that carry legal, regulatory, and reputational consequences with no documented process to defend them. As AI regulations multiply across the U.S. and globally, companies that have a governance framework in place are better positioned for enterprise deals, investor due diligence, and regulatory scrutiny.

AI Governance & Automation Legal Services | Rikka Law

That depends on where you operate, what your AI system does, and who it affects. The EU AI Act, Colorado AI Act, California's ADMT rules, and federal agency guidance all impose different obligations on different types of AI systems. Rikka maps your AI use cases against applicable law, identifies your highest-risk applications, and builds a compliance roadmap tailored to your product and markets.

 in training data collection, liability exposure when AI systems make consequential decisions, and vendor agreements that transfer more rights than the client realizes. Rikka conducts privileged AI audits that surface these risks before a regulator, a counterparty, or a plaintiff does.

 over inputs and outputs, data use and retention restrictions, representations about training data provenance, liability allocation for AI failures, and the right to audit. Most off-the-shelf AI vendor terms are written to protect the vendor. Rikka reviews and negotiates those terms so they protect you.

We start with your actual AI stack, not a generic template. We map every AI tool and system your company uses or is building, assess the legal and regulatory risk of each, and design governance policies your team can actually follow. The result is a documented framework that you can show to enterprise clients, regulators, and investors when they ask how you manage AI risk.

Compliance is reactive: checking whether you meet a specific legal requirement. Governance is proactive: building the internal structure that keeps you compliant across changing regulations, new product features, and evolving risk. Rikka helps companies build the governance layer so that compliance becomes a byproduct of how you operate, not a scramble before every audit or enterprise deal.

Yes. We can embed our team in your business, learn your AI goals and help you achieve them in compliance with the law. AI governance is not a one-time exercise. It is an iterative and requires a consistent disciplined approach. Let us help you leverage AI as your competitive advantage.

Charlyn Ho Discusses the Collision Between Privacy and AML Laws in Crypto with Cointelegraph

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