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Compliant Stablecoin

Definition

A compliant stablecoin is a digital asset designed to maintain a stable value while adhering to financial regulations. These stablecoins are typically pegged to fiat currencies, commodities, or other assets and operate within frameworks established by financial authorities. Compliance requires regular audits, robust reserve management, and adherence to anti-money laundering and know-your-customer (AML/KYC) protocols. Their design aims to provide the stability of traditional currencies with the efficiency of blockchain technology.