# 6.2 Compliance Architecture

Tokenization of RWAs inevitably intersects with securities law, property law, and debt regulation. To address this, XUnit is designed around “technical abstraction + compliance readiness”, avoiding direct regulatory entanglement while leaving integration pathways open.

a) Rights Abstraction

* NFTs are not marketed as legal ownership titles of real-world assets.
* Instead, they are defined as “Digital Proofs” or “Indexes of Rights”, whose value derives from on-chain liquidity and future extensibility, not immediate legal enforceability.<br>

b) Compliance Hooks

* Modular interfaces are reserved for KYC/AML integration:\
  \
  ৹  Certain asset classes (e.g., securities, real estate) may require compliance modules.\
  \
  ৹  Modules are provided by licensed third-party compliance providers, while XUnit remains infrastructure-neutral.

* Off-Chain Audit Anchoring: NFT metadata can embed hash references of third-party audits, ensuring authenticity and verifiability of linked RWAs.

c) Tiered Market Design

* Open Layer: Accessible to all users, supporting non-security assets such as art or carbon credits.\ <br>

* Regulated Layer: Assets classified as securities require accredited investor checks and compliance verification.

* Isolation Principle: Different asset categories operate within the same infrastructure but remain logically isolated to reduce regulatory contagion.


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