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Lidian enables payment companies to move between stablecoins in a compliant and efficient manner.

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Disclaimer

The information provided in this section is for general informational purposes only and does not constitute legal or regulatory advice.
Compliance obligations may vary based on jurisdiction, licensing status, and business activity. Entities classified as VASPs, EMIs, or MSBs should seek guidance from qualified legal counsel or compliance professionals to determine their specific responsibilities and ensure adherence to applicable laws and regulations.

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Know Your Business (KYB)

All participants interacting with the Lidian API are KYC’d or KYB’d entities. This supports Lidian in facilitating compliance-related processes for both money movers and liquidity providers. Lidian uses vetted third‑party compliance providers for entity onboarding, data processing, and secure data storage. Lidian retains only the minimum data necessary to support compliance operations. KYB information may be securely shared with counterparties to facilitate Travel Rule compliance (see below). Participants complete KYB verification once before gaining network access and may then use multiple wallets for transactions.

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Travel Rule Compliance

Under the Financial Action Task Force (FATF) Recommendation 16, commonly known as the Travel Rule, VASPs, EMIs, and MSBs must transmit originator and beneficiary information when transferring digital assets above applicable thresholds. The purpose of this requirement is to ensure transparency similar to traditional wire transfers, allowing regulators to trace the flow of funds when necessary. Lidian’s protocol architecture is designed to assist participants in meeting aspects of Travel Rule requirements but does not independently ensure or guarantee compliance. Responsibility for fulfilling regulatory obligations remains solely with the entities using the Lidian protocol. The framework aims to support adherence to standards established by FATF, FinCEN, and other local regulators when interacting with counterparties and moving between stablecoins.

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Additional Compliance

Beyond KYB and the Travel Rule, regulated institutions face ongoing responsibilities including transaction monitoring, sanctions screening, recordkeeping, and suspicious activity reporting. EMIs and MSBs are generally required to maintain AML programs, perform continuing due diligence, and retain transaction data for audit purposes. VASPs may also be expected to demonstrate that they can identify and mitigate risks associated with counterparties and on‑chain transaction behavior. Lidian’s infrastructure is designed to promote transparency and interoperability, allowing counterparties to integrate compliance tools such as sanctions checks, risk scoring, and audit logging into their own systems. By operating as a non‑custodial compliance infrastructure, Lidian provides mechanisms to support regulated entities in meeting their obligations while maintaining the efficiency and neutrality of decentralized networks.