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Securities Law Compliance

Definition

Securities law compliance refers to the adherence to legal and regulatory requirements governing the issuance, sale, and trading of securities, aimed at protecting investors and ensuring market fairness. For digital assets, this involves determining whether a token qualifies as a security and, if so, meeting obligations such as registration, disclosure, and anti-fraud provisions. Failure to comply can result in significant penalties, fines, and legal action from regulatory authorities. It is a critical consideration for all digital asset projects.