Core Compliance Principles are the fundamental rules and guidelines that financial institutions and digital asset entities must follow to adhere to regulatory requirements. These principles typically cover areas such as anti-money laundering (AML), know-your-customer (KYC) procedures, data security, and market integrity. Adherence to these principles helps prevent illicit financial activities and protects consumers. They establish a baseline for responsible operation within regulated financial landscapes.
Context
Discussions surrounding Core Compliance Principles in the digital asset space focus on adapting traditional financial regulations to the unique characteristics of cryptocurrencies and blockchain technology. The current situation involves various jurisdictions developing tailored compliance frameworks to address risks associated with digital assets. A critical future development is the establishment of globally harmonized compliance standards, which would provide greater clarity and consistency for businesses operating across different regulatory environments.
The DCCPA draft operationalizes a comprehensive federal regime, requiring Digital Commodity Intermediaries to implement core compliance principles for customer asset segregation and market integrity.
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