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EU's Comprehensive AI Law Takes Effect, Impacts Crypto Industry

Guavy AI Editorial Team
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The European Union has made history by passing the world's first comprehensive AI law, which affects the crypto industry. The EU AI Act entered into force on August 1, 2024, and sets a phased timeline for compliance.

The Act prohibits certain high-risk AI practices, with penalties reaching up to €35 million or 7% of global annual turnover. Transparency obligations and requirements for general-purpose AI systems will take effect around August 2, 2026.

The intersection of AI and crypto has become a key infrastructure component, with AI agents processing over $73 million across approximately 176 million transactions on blockchain rails between May 2025 and April 2026. Decentralized AI networks face compliance questions regarding transparency, data governance, and human oversight.

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