Distribution Compliance

Definition ∞ Distribution Compliance refers to the adherence to legal and regulatory requirements governing the offering and sale of digital assets. This includes ensuring that tokens are distributed according to securities laws, anti-money laundering regulations, and consumer protection statutes. It is crucial for projects seeking to operate legitimately and avoid legal repercussions. Proper compliance helps establish trust with investors and regulators.
Context ∞ In the digital asset space, distribution compliance is a continually evolving area, with regulators worldwide working to clarify rules for initial coin offerings, token sales, and other distribution mechanisms. News often covers enforcement actions against non-compliant projects or new guidelines issued by financial authorities. This focus on compliance aims to mitigate risks for investors and prevent illicit activities within the market.