Life Cycle Compliance refers to the adherence to legal and regulatory requirements throughout the various stages of a cryptocurrency’s existence. This includes the processes involved in its creation, distribution, trading, and eventual dissolution.In the initial phase, compliance involves ensuring that the project meets local and international laws regarding securities, anti-money laundering (AML), and know-your-customer (KYC) regulations. This is crucial for building trust and legitimacy from the start.During the trading phase, platforms must continuously monitor transactions for suspicious activities. They are responsible for implementing robust security measures to protect users and comply with reporting requirements to government agencies.Finally, life cycle compliance doesn’t end once a cryptocurrency is established. Ongoing audits, updates to policies, and response protocols for regulatory changes remain vital. This holistic approach helps mitigate legal risks and fosters a healthier market environment. By adhering to compliance, all participants can contribute to the sector’s long-term viability.