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  1. Home
  2. /Glossary
  3. /Compliance
Back to Glossary
traditional-finance

Compliance

Following the laws and regulations that apply to financial activities, including crypto.

Definition

Following the laws and regulations that apply to financial activities, including crypto. Exchanges need licenses, must verify users, report suspicious transactions, and follow local securities laws. As the industry matures, compliance has become a major cost and competitive differentiator.

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Related Terms

KYC (Know Your Customer)

Identity verification required by regulated financial services.

Anti-Money Laundering (AML)

Laws and procedures designed to prevent criminals from disguising illegal funds as legitimate income.

Securities Classification

The legal determination of whether a crypto token qualifies as a security under financial law.

Accredited Investor

Someone who meets specific income or net worth thresholds set by regulators, qualifying them for investments not available to the general public.

Asset Allocation

How you divide your investments across different asset classes like stocks, bonds, crypto, and cash.

Blue Chip

A well-established, financially sound company or crypto project with a proven track record.

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