Lead Magnet / File W3RC-CHK-01
Digital-Asset Compliance Checklist
A practitioner's pre-engagement issue-spotting framework
§ 01
Asset Classification
- Identify whether the instrument exhibits investment-contract characteristics under Howey or analogous frameworks.
- Document the asset's economic substance independent of its technical wrapper.
- Confirm whether stablecoin, security token, payment token or commodity classification questions remain open.
- Assess whether wrapping, bridging or re-issuance alters the classification analysis.
§ 02
Issuance & Distribution
- Map the offering structure, eligible investor categories, and any reliance on exemptions.
- Confirm marketing and solicitation channels do not create general-solicitation issues for the chosen exemption.
- Determine whether resale restrictions, lock-ups, or transfer agents are required.
- Identify whether secondary-market venues alter the distribution analysis.
§ 03
Custody & Safekeeping
- Confirm whether custodial arrangements implicate qualified-custodian or trust-company requirements.
- Document key-management controls, segregation of customer assets, and proof-of-reserves practices.
- Identify the impact of self-custody, MPC, or smart-contract custody on the regulatory perimeter.
§ 04
AML / KYC / Sanctions
- Determine whether the activity constitutes money transmission, VASP, or MSB activity in the touchpoint jurisdictions.
- Map sanctions exposure across counterparties, wallet addresses, and protocol-level flows.
- Document Travel Rule applicability and information-sharing arrangements.
- Confirm transaction-monitoring, SAR/STR, and recordkeeping obligations.
§ 05
Market Integrity & Conduct
- Identify market-manipulation, insider-trading, and front-running exposure relevant to the product.
- Confirm disclosure obligations to counterparties and venues.
- Document conflicts of interest in matched-principal, market-making, or affiliated-venue arrangements.
§ 06
Tax
- Confirm characterisation for income, capital-gains, and information-reporting purposes.
- Identify withholding, broker-reporting (1099-DA / DAC8) and indirect tax (VAT/GST) touchpoints.
- Document treatment of staking, lending, airdrops and rebasing events.
§ 07
Data, Privacy & Cybersecurity
- Identify personal-data flows, cross-border transfers, and applicable data-protection regimes.
- Confirm incident-response and breach-notification readiness.
- Document smart-contract audit posture, key-rotation, and emergency-pause controls.
§ 08
Governance & Operational
- Document the legal entity stack, on-chain/off-chain governance, and decision-making perimeter.
- Confirm board, committee, and policy artefacts cover the digital-asset activity.
- Identify whether DAO or token-holder governance creates fiduciary or partnership exposure.
Statutory Notice
This tool is for educational and issue-identification purposes only. It does not constitute legal advice and does not create an attorney-client relationship.