What Are the Key Compliance Requirements for a Security Token Offering?

Key compliance requirements include adherence to securities laws, often involving registration or exemption filings with regulatory bodies like the SEC. This mandates rigorous Know Your Customer (KYC) and Anti-Money Laundering (AML) checks on investors.

Furthermore, the token must be structured to provide investors with security-like rights and often requires restrictions on transferability, ensuring only accredited investors participate initially.