Quasi-compliance refers to a situation where a project or entity adheres to certain regulatory requirements but does not fully meet all of them. This often arises in the cryptocurrency space due to the rapidly evolving nature of regulations and varying interpretations by different jurisdictions.For example, a cryptocurrency exchange may implement some anti-money laundering (AML) measures but fall short of complete compliance with all applicable laws. This can happen because the regulations may be vague or the exchange might prioritize user acquisition over strict adherence to rules.Quasi-compliance can lead to risks for both the entity and its users. While it might allow continued operation in a somewhat legal grey area, it also exposes the entity to potential legal action or penalties if regulators decide it’s not sufficient. Ultimately, projects aiming for quasi-compliance must constantly assess their legal obligations and adapt to changing regulations to minimize risks while maintaining user trust.