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What Is the Role of KYC/AML in the Issuance and Trading of Security Tokens?

KYC/AML is mandatory for STOs; the smart contract enforces compliance by whitelisting only verified addresses to prevent illicit activity.
Greeks.Live16.11.25

What Is the Role of KYC/AML in the Issuance and Trading of Security Tokens?

Know Your Customer (KYC) and Anti-Money Laundering (AML) checks are mandatory for STOs to comply with global financial regulations. The token's smart contract often enforces these checks by requiring addresses to be whitelisted after successful verification.

This ensures that the token is not used for illicit activities and that issuers know who their investors are. This compliance layer distinguishes STOs from typical utility tokens.

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