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Compliance

Overview

The compliance layer is the core governance framework for permissioned token transfers in the Nestor Protocol. It encompasses three primary screening functions:

  • KYC/AML — Know Your Customer / Anti-Money Laundering
  • Sanctions screening
  • PEP screening — Politically Exposed Persons

Key Features

Token Transfer Governance: The framework establishes offering rules and transfer restrictions to ensure transfers are conducted in line with the legal and regulatory guardrails of MiFID II.

Upgrade Capability: The compliance modules are designed as upgradeable components, with each module being tied to specific tokens rather than operating as a monolithic system.

Regulatory Alignment: The system is structured to support permissioned network participation, meaning participants must satisfy compliance requirements before engaging in token transfers.