vii. Compliance, Regulation & Legal Frameworks

Compliance, regulation, and legal frameworks define the rules governing how tokenized assets are structured, issued, and managed. These requirements ensure that digital representations of real-world assets align with existing laws, protect participants, and support market integrity.

Accredited Investor

An investor meeting regulatory criteria related to income, net worth, or professional status.

Compliance Obligation

A legal or regulatory requirement that must be satisfied by issuers, platforms, or participants.

Disclosure Requirement

Information that must be provided to investors or regulators to ensure transparency.

Jurisdiction

The legal authority under which an asset, issuer, or transaction is governed.

Know Your Customer (KYC)

Procedures used to verify the identity of participants in financial transactions.

Licensing Requirement

A regulatory authorization needed to operate, issue, or facilitate digital asset activity.

Regulatory Classification

The legal categorization of a token or asset under applicable laws.

Securities Regulation

Laws governing the issuance, trading, and disclosure of investment instruments.

Transfer Restriction

Limits imposed on who can receive or trade an asset, often for compliance reasons.

White Paper

A formal document describing the structure, risks, and mechanics of a digital asset offering.