Here's a candid truth: any financial operation you execute on the blockchain ultimately cannot escape the core regulatory questions—who can participate, to what extent, who is responsible if something goes wrong, how are transaction traces kept, and what are the reporting procedures.

Many people see MiCA, MiFID II and want to skip over them, thinking these are legal department issues. But the real bottleneck isn't about "whether blockchain is used" but rather "whether this chain can turn compliance into an executable transaction process."

Dusk's approach is very clear: move traditional financial workflows, which still run in black-box systems, onto the chain, while maintaining regulatory compliance, counterparty privacy, execution efficiency, and the certainty of final settlement. More importantly—compliance rules are directly embedded at the protocol layer, allowing institutions to enforce disclosure, KYC/AML, audit reports, and other rules without post-hoc remedies.

Breaking down "on-chain compliance," essentially means encoding real-world obligations into on-chain rules.

**Access Dimension**: Who is qualified to participate, who can purchase specific asset classes, who can only view data.

**Restriction Dimension**: Position limits, transfer lock-up periods, regional restrictions, different permission levels based on investor classification.

**Post-Transaction Dimension**: After the transaction is completed, what data must be reported to designated parties within specified time windows, how to ensure reporting consistency, auditability, and full traceability.

This is the true meaning of "compliance written into the protocol"—not just attaching a disclaimer, but making compliance an integral part of the trading logic itself.