Compliance Essentials

Know Your Customer (KYC) and Anti-Money Laundering (AML)

Implementing robust KYC/AML processes is crucial for regulatory compliance and reducing the risk of illicit activities. KYC is particularly essential during token sales to avoid severe legal repercussions, including potential criminal liability.

As the regulatory landscape continues to evolve and remains unclear in certain areas, implementing thorough KYC/AML practices is the best protection for project founders. It demonstrates due diligence, a clear intention to comply with laws, and a commitment to safeguarding investors.

Actionable Insight:

• Integrate reliable third-party compliance tools to streamline KYC and AML procedures from the project outset.

• Maintain comprehensive documentation of your KYC/AML processes to demonstrate compliance and due diligence.

Securities Laws Compliance

Determining whether your token qualifies as a security significantly affects regulatory requirements, particularly around fundraising and investor communications.

Actionable Insight:

• Seek specialized legal counsel to analyze and ensure compliance with relevant securities laws (e.g., SEC regulations in the United States).