# Legal and Regulatory Compliance

Tokenizing RWA assets must strictly comply with laws and regulations across different jurisdictions. BlockRock employs a robust compliance framework to ensure all product designs meet legal standards. We collaborate with leading legal, tax, and regulatory experts to guarantee adherence to relevant regulations.

1. **Fund Structure**

   BlockRock’s RWA tokenized funds utilize a Special Purpose Vehicle (SPV) structure. The SPV oversees fund investment, management, and custody while ensuring compliance.

   * Each fund’s specific structure and compliance requirements are tailored based on its investment objectives, applicable regulations, and investor demands.
2. **Securities Law Compliance**
   * Funds on the BlockRock platform are registered or exempt under regional securities laws, ensuring investor eligibility aligns with accredited standards.
   * Tokenized fund shares (e.g., QQQAI Token \[$QQQAI]) are available only to investors meeting specific regulatory criteria (e.g., non-U.S. persons outside the U.S.), complying with securities issuance and trading rules.
3. **KYC / AML / Counter-Terrorism Financing Compliance**
   * All investors must complete KYC (Know Your Customer) and AML (Anti-Money Laundering) processes before investing, adhering to global financial crime prevention regulations.
   * Identity verification is conducted by compliance teams and third-party certification agencies to meet international regulatory requirements.
4. **Asset Custody and Liquidity Management**
   * **Custodians**: All fund assets are held by regulated custodians to ensure security.
   * **Liquidity Support**: Market liquidity is supported by institutional market makers (MMs) and risk management mechanisms to ensure price stability and market depth for tokenized assets.