In this chapter, we look at the relationship between blockchain interoperability and regulatory frameworks in an increasingly decentralized digital world. It depicts the constant battle between technical advancement and the power of jurisdiction, beginning with the fundamental demand for regulation in interchain networks. This chapter assesses the impact of industry-specific laws in banking, supply chains, and finance, focusing on compliance issues such as data sovereignty, AML/KYC, and token classification. The chapter addresses novel methods such as regulatory sandboxes, international collaboration, and legal wrappers, thereby clarifying legal uncertainties and jurisdictional gaps in smart contract enforcement. The topic focuses on governance models, specifically responsibility for DAOs and bridge operators, as well as meta-governance challenges such as vote hijacking and Sybil attacks. This chapter finishes with an introduction to the emerging domain of RegTech, which encompasses decentralized identity onboarding, AI-powered compliance, and the use of verifiable credentials and zero-knowledge proofs (ZKPs) for privacy-protecting disclosures. The use of smart legal contracts and regulatory oracles as programmable enforcement instruments is also discussed. Overall, this chapter gives a detailed path for combining cross-chain innovation with institutional and regulatory requirements.