The reason why @Dusk Incorporates Compliance at the Protocol Level, Rather than Later.
The majority of blockchains view compliance as external. Filtering by means of an applied post-execution, a permissions layer is attached to the system after it has started. This is so long as the assets are experimental. As soon as regulated instruments appear into the picture, that separation proves to be a liability.
Compliance is not a consideration at the @Dusk Foundation. It is not unrelated to the manner in which the protocol runs out transactions at all. During execution, rules regarding eligibility, transfer restriction and jurisdictional limitation could be implemented, and not verified later by off-chain systems.
This design is important since controlled finance does not take gaps in logic and enforcement. When compliance is not within the protocol, then it may be circumvented, rejected, or inconsistently enforced. @Dusk is not subjected to this fragmentation by rendering compliance a consequence of execution itself.
To the institutions and builders, it is reduced external dependencies and reduced operational risk. The regulatory constraints of assets cause them to act in a particular way. The protocol presupposes compliance on the very first level.
