📰 MUNG LEGAL | NOVEMBER 2025 NEWSLETTER

Monin Ung
Nov 25
3 min read

Helping you navigate where Web3, AI, and law converge

Bitcoin dips below US $95 000 amid a four-day rout

The flagship cryptocurrency Bitcoin fell below US $95 000, extending a multi-day sell-off that underscores renewed volatility across crypto markets.

Key legal / compliance implications:

📉 Market stress may trigger tighter AML/KYC and disclosure scrutiny on exchanges and issuers.
⚖️ Volatility increases counter-party and smart-contract risk in DeFi and tokenised-asset structures.
🚨 Potential exposure for mis-advertising or return-claim violations in jurisdictions that regulate crypto promotions.

💬 Advisory insight: Legal teams should stress-test client frameworks for liquidity, counter-party, and marketing-compliance risk before year-end.

AI & Infrastructure

Anthropic announces major US data-centre expansion

AI company Anthropic is investing roughly US $50 billion—via partner Fluidstack—to build hyperscale data centres in Texas and New York through 2026. These facilities will power frontier-model training and deployment.

Legal and regulatory lenses:

Data-localisation & cross-border compute: AI infrastructure may fall under data-transfer or export-control laws.
Energy & environmental compliance: permits, carbon accounting, and local-utility regulation.
Contractual exposure: long-term hardware supply, uptime SLAs, and power-grid risk.
AI safety & liability: emerging frameworks on model alignment and accountability.

💬 Advisory insight: Counsel should be involved early in infra procurement and site selection, given the scale of contractual and environmental risk.

Global AI Strategy & China Focus

China is running a different kind of AI race

Analysts argue that China has shifted its AI strategy from “who builds the best model” to “who deploys AI fastest and most broadly across society.” This move toward industrial and social integration may reshape global AI leadership patterns.

Legal and strategic considerations:

🔒 Data-flow restrictions & export controls: US–China divergence intensifies compliance complexity.
🧩 Localisation mandates: AI systems operating in China must meet content-moderation and safety audits.
🤝 Cross-border partnerships: Review IP-licensing, model-training collaboration, and joint-venture structures.

Advisory insight: Expect stricter model-registration & content-regulation requirements inside China—and potential extraterritorial effects on global AI ventures.

Legal Spotlight – What Lawyers Should Watch

Web3 / Crypto: Re-examine token-offering disclosures, audit DeFi smart contracts, and reassess digital-asset classification. AI Infrastructure: Shift focus from software to hardware + compute risk: power contracts, supply chains, and liability clauses. Global AI Rivalry: Track regulatory divergence between the US, EU, and China; ensure export-control compliance. Liability & Governance: Model failures, data breaches, and misuse create new legal exposure—governance must precede deployment. Regulatory Arbitrage: Varying regional rules allow strategic structuring—jurisdiction choice now shapes regulatory risk.

MUNG LEGAL ACTION ITEMS FOR CLIENTS

✅ Crypto / Web3 Clients: Review token-offering materials and smart-contract audits for risk disclosures. 🏢 AI Infrastructure / Data-Centre Clients: Advise on site-licensing, energy regulation, and environmental filings. 🌐 Cross-Border AI Partnerships: Conduct export-control and data-transfer risk assessments with Chinese or US counterparties. 🧠 Governance Frameworks: Implement AI incident response plans, usage logs, and risk-management policies.

🌟WEB300 Series : Patent Law in Japan Webinar.

MUNG Legal is proud to announce it’s WEB300 Series : Patent Law in Japan webinar, including keynote speakers such as Mikiko Kure and Yuzo Wada - Partners at Uchida & Samejima Law Firm.

In this first ever online exclusive MUNG legal webinar, discover the landmark court cases that led Japan to amend its Patent Act. Get first hand and crystal-clear explanation of Article 102, decode the comparison between patent regimes in Japan and Hong Kong and so much more.

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Thank you for reading the November 2025 edition of Mung Legal Insights. For bespoke briefings on crypto-asset regulation, AI infrastructure contracts, or China’s AI governance landscape, contact us at info@munglegal.com.

Let’s define the future — legally and intelligently.

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