> For the complete documentation index, see [llms.txt](https://docs.theangel.app/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.theangel.app/compliance-and-security/regulatory-framework.md).

# Regulatory Framework

TheAngel is built on a foundation of regulatory alignment, investor protection, and institutional-grade security architecture.

This section explains how the platform ensures compliance across multiple jurisdictions, protects investor and founder assets, and maintains a secure environment for tokenised fundraising.

Compliance and security are not optional — they are core to TheAngel’s value proposition.

***

## Overview

TheAngel integrates three layers of protection:

1\. Regulatory Compliance  

2\. Asset Protection & Legal Structuring  

3\. Platform & Smart Contract Security

Together, these layers create one of the safest environments for early-stage fundraising and investing.

***

## Regulatory Framework (Global Overview)

TheAngel operates across multiple jurisdictions and adheres to the applicable regulatory frameworks for fundraising, investor onboarding, token issuance, and secondary trading.

***

#### 1. European Union (Luxembourg)

Through Filedgr’s securitisation model:

* TheAngel uses Luxembourg Securitisation Funds, one of the most respected financial structures globally.
* These funds operate under Luxembourg’s Securitisation Law (2004, updated 2022).
* Each startup receives a dedicated compartment, legally protected and bankruptcy-remote.
* Investment notes issued receive a unique ISIN, enabling transferability and standardisation.
* Properly configured compartments qualify for AIFMD exemptions.

Source: Filedgr documentation 

#### 2. United Arab Emirates (DMCC, VARA, ADGM)

As a UAE-based operator, TheAngel complies with:

* DMCC licensing for marketplace operations
* VARA guidance for virtual asset activity (where applicable)
* ADGM FSRA standards for investment-related activities
* AML, CFT, and KYC obligations under UAE law

This ensures the platform operates with regional approval and oversight.

#### 3. United States (Reg D / Accredited Investors)

Where US investors participate, TheAngel supports:

* Regulation D (Rule 506(c)) for accredited investors
* Investor self-attestation + documentation procedures
* Prohibition on general solicitation for specific offerings
* Additional tiered verification for larger investments

Tokens issued do not constitute public securities and follow private placement rules.

#### 4. Global AML/KYC Compliance

All investors and founders undergo mandatory due-diligence screening through regulated providers.

Checks include:

* Identity verification
* Address verification
* PEP (Politically Exposed Person) checks
* Sanctions lists
* Fraud detection
* Source-of-funds requirements (as needed)

This protects the platform, founders, and investors from illicit activity.