Overview
Compliance is adhering to laws and regulations, including AML and KYC requirements. It is mandatory for regulated platforms. Compliance programs manage legal risk.
How It Works
Platforms implement KYC/AML, reporting, and licensing procedures to satisfy regulators. They monitor transactions and screen users. Compliance costs and processes scale with business size.
Why It Matters
Compliance enables platforms to operate legally and access banking and markets. It also raises user friction and costs. It is a defining constraint of the regulated crypto industry.
Related Concepts
Compliance relates to Regulation, KYC, and AML. It is the Operational side of Legal requirements.