How Can Smart Contracts Enforce Compliance Rules on Token Transfers? ⎊ Path

How Can Smart Contracts Enforce Compliance Rules on Token Transfers?

Smart contracts enforce compliance by integrating an access control layer that checks the sender and receiver addresses against a pre-approved list (whitelist) before executing a transfer. The contract can also check for other conditions, such as the investor's jurisdiction or accreditation status.

If any compliance rule is violated, the transfer function will automatically revert the transaction.

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Glossar

Access Control Layer

Protocol ⎊ This foundational element dictates the permissible interactions between market participants and the underlying financial infrastructure, particularly crucial in decentralized finance (DeFi) derivatives.