Issuer Compliance

Definition ∞ Issuer Compliance refers to the adherence by entities that issue digital assets to relevant legal, regulatory, and internal policy requirements. This includes fulfilling obligations related to securities laws, anti-money laundering regulations, and consumer protection standards. For stablecoins or security tokens, compliance often involves maintaining adequate reserves, conducting regular audits, and providing transparent reporting. Failure to maintain compliance can result in legal penalties and reputational damage.
Context ∞ Issuer compliance is a central theme in the evolving regulatory landscape for digital assets, particularly concerning initial coin offerings (ICOs) and security token offerings (STOs). Debates frequently address the varying jurisdictional requirements and the challenges of achieving global regulatory alignment. The emphasis on robust compliance frameworks is growing as regulators seek to protect investors and maintain market integrity.