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What consumer protection laws apply to services operating on blockchain platforms?

Blockchain-based services are covered by different consumer protection laws designed to promote transparency, fairness, and the protection of consumer rights. For example, the California Consumer Privacy Act (CCPA) and the General Data Protection Regulation (GDPR) relate to data privacy and users’ rights related to their personal information. Blockchain services are also required to follow Anti-Money Laundering (AML) and Know Your Customer (KYC) laws to prevent any fraudulent or illegal activity. The Federal Trade Commission (FTC) administers laws to protect users from deceptive or unfair practices, and securities laws may apply if a blockchain service offers digital assets that may qualify as securities, meaning greater transparency and consumer protection related to investments. The Consumer Financial Protection Bureau (CFPB) regulates platforms that offer financial services, ensuring consumers are treated fairly. Federal and state laws regarding unfair trade practices and digital goods protect users against fraud and misleading claims. As blockchain technology evolves, consumer protection laws must also evolve to address issues associated with decentralized systems and digital assets.

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