> For the complete documentation index, see [llms.txt](https://airshipx.gitbook.io/airshipx/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://airshipx.gitbook.io/airshipx/faq/terms-of-service/7.disclosure-and-risk/7.4.-regulatory-risk..md).

# 7.4. Regulatory Risk.

Legislative and regulatory changes or actions at the state, federal or international level may adversely affect the use, transfer, exchange and value of virtual NFTs and blockchain rewards. The regulatory status of crypto tokens, digital assets and blockchain technology is unclear or unstable in many jurisdictions. It is difficult to predict how or whether government authorities will regulate such technologies. Likewise, it is difficult to predict how or if any government agency will change existing laws, regulations and/or rules that will affect cryptographic tokens, digital assets, blockchain technology and their applications. Such changes may negatively affect Airship services in various ways, for example, by identifying any of the above as regulated financial instruments that require registration. Airship may cease the distribution of any of the foregoing, the development of the Airship Platform, or the operation of the Airship Platform in a jurisdiction if government action makes it illegal or commercially undesirable to continue to do so. The industry Airship operates in is new and may be subject to increased oversight and scrutiny, including investigations or enforcement actions. There can be no assurance that governmental, quasi-governmental, regulatory or other similar (including banking) authorities will not review Airship's operations and/or take enforcement action against Airship. Such government activity may or may not be the result of Airship specifically. All of these may subject Airship to judgments, settlements, fines or penalties, or cause Airship to restructure its operations and activities or cease to provide certain products or services, all of which may damage Airship's reputation or result in higher operating costs, which may will have a material adverse effect on Airship service.


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