Compliance by Design is a methodology where regulatory requirements and ethical considerations are incorporated into the foundational architecture and operational processes of a system. This approach ensures that adherence to laws and standards is an intrinsic feature, not an afterthought. It aims to mitigate risks and streamline regulatory audits from the initial stages. For digital assets, this means constructing protocols and platforms with regulatory frameworks considered from inception.
Context
The concept of compliance by design is gaining traction within the digital asset sector as regulators seek enhanced oversight. Developers and firms are increasingly focused on embedding regulatory mechanisms, such as identity verification or transaction monitoring, directly into blockchain protocols and decentralized applications. News frequently highlights innovations in this area, aiming to bridge the gap between decentralized technology and regulatory demands.
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