> For the complete documentation index, see [llms.txt](https://docs.usefarlight.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.usefarlight.com/compliance/jurisdictions.md).

# Where Farlight operates

Farlight's position in the United States, the EU and EEA and the other Stock Token countries, with the reasoning behind each one.

{% hint style="info" %}
What follows is the reasoning behind the protocol's jurisdictional positions. It is not legal advice. The positions themselves are enforced in code by the [access registry](/architecture/eligibility.md).
{% endhint %}

## United States

US persons may use Farlight. They go through the same verification as everyone else: identity, sanctions and suitability checks by the attestation issuer. Lending is open to professional clients. Borrowing is open to verified businesses and to professional or high-net-worth individuals. At no point in the loan lifecycle does the protocol exercise managerial discretion: origination, repayment, refinance and liquidation are rule-based and can be triggered by anyone eligible.

## EU and EEA, the primary market

In EU law, Stock Tokens are MiFID II financial instruments, not MiCA assets. A peer-to-peer loan secured on them is a bilateral credit agreement, with the platform acting as a loan-intermediation service.

The operating basis rests on three points:

* **Lenders are professional clients only.** Keeping the lender side to professional clients keeps the lender-side instrument outside retail-offer rules. Lending by retail participants opens one jurisdiction at a time, under the crowdfunding or intermediation regime that applies there.
* **Borrowers are businesses, or professional and high-net-worth individuals.** A consumer borrower brings national consumer-credit law into play, so retail borrowers are admitted only where those requirements are met.
* **USDG is regulated under MiCA**, which supports its use as the settlement asset across the EEA.

## Other Stock Token countries

Farlight follows the Stock Tokens' own jurisdiction list (120+ countries), less any jurisdiction where lending intermediation is a licensed activity and operating without a licence is prohibited. The list is kept by the attestation issuer and published on the eligibility page.

## Money transmission, VASP and CASP

User funds never leave the escrow contracts and fiat is never converted. In every jurisdiction where the front-end is offered, the operating company is assessed for VASP or CASP status, and the front-end is geo-fenced for restricted jurisdictions.

## Anti-money laundering

* Sanctions screening when an attestation is issued and at each renewal.
* Continuous re-screening, with revocation taking effect immediately.
* A second, independent layer in the sequencer's own screening, run by TRM Labs.
* Transaction monitoring on the relayer and the indexer for patterns that warrant review.

## Summary

| Region                      | Who may borrow                                        | Who may lend         | Notes                                         |
| --------------------------- | ----------------------------------------------------- | -------------------- | --------------------------------------------- |
| United States               | Verified businesses, professional and HNW individuals | Professional clients | Eligibility based on verification             |
| EU / EEA                    | Verified businesses, professional and HNW individuals | Professional clients | Primary market                                |
| Other Stock Token countries | As for the EU, subject to local rules                 | Professional clients | Excluded where intermediation needs a licence |


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