Required Issuer Policies for Tokenized Offerings
AML/KYC Policy (Anti-Money Laundering & Know Your Customer)
Tokenized securities are regulated financial instruments. Issuers must screen and verify investors to prevent money laundering, terrorist financing, and identity fraud.
Key reasons to adopt and upload:
Ensures compliance with FATF, MiCA, SEC, or other financial regulations
Required for onboarding investors in most jurisdictions
Enables whitelisting and permissioned access to tokens
Builds trust with platforms, custodians, and regulators
Privacy Policy
Issuers collect and store sensitive investor data (e.g., identity documents, wallet addresses, contact details). A clear privacy policy is legally required under GDPR, CCPA, and other data protection laws.
Key reasons to adopt and upload:
Defines how investor data is collected, used, stored, and protected
Required to operate legally in most jurisdictions
Avoids fines and enforcement under global data privacy laws
Builds investor confidence in the issuer’s transparency and integrity
Terms of Use
Terms of Use outline the legal agreement between the issuer and the user/investor. They define access, token use, limitations of liability, dispute resolution, and platform rules.
Key reasons to adopt and upload:
Provides a legal framework for using the token and any associated dashboard/platform
Protects the issuer from legal claims or misuse
Ensures token holders are aware of rights, responsibilities, and platform conditions
Aligns with investor onboarding and transaction compliance
Conflict of Interest Policy
A Conflict of Interest Policy defines how the issuer identifies, manages, and discloses situations where personal or financial interests could improperly influence decision-making in the tokenization project.
Key reasons to adopt and upload:
Promotes transparency and integrity in the project’s governance and operations
Reduces the risk of biased decisions that could harm investors or stakeholders
Builds trust with regulators and investors by demonstrating responsible management
Aligns with best practices for corporate governance and regulatory compliance
These documents are essential to operating legally, protecting the issuer, and gaining investor trust. They form the compliance foundation of any tokenized offering.
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