Blockchain Compliance

Definition ∞ Blockchain compliance denotes adherence to regulatory requirements and legal frameworks governing blockchain technology and digital assets. It ensures that decentralized systems and applications operate within established legal parameters, safeguarding against illicit activities. Achieving blockchain compliance is paramount for mainstream adoption and institutional integration.
Context ∞ The ongoing debate regarding blockchain compliance involves balancing decentralization principles with the need for regulatory oversight. Discussions often focus on Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols as applied to decentralized finance (DeFi) and non-fungible tokens (NFTs). Future developments will likely involve the harmonization of international regulatory approaches to digital asset governance.