Compliance

Legal structure & compliance

Legal entity

    * Legal entity: A legal entity incorporated in Hong Kong that oversees protocol development and governance.
    * Operating Company: a for-profit entity incorporated in a jurisdiction, developing and operating the platform.
    * Asset-holding SPV: A special purpose vehicle created for each physical asset that holds legal ownership of the asset.
    * Trust structure: A legal trust to protect the rights of token holders.


Securities law compliance

    * Compliance strategy for the possibility of asset tokens being classified as securities
    * Apply jurisdiction-specific securities registrations or exemptions
    * Qualified Investor Verification System

Environmental compliance

    * Permitting and regulatory compliance for plastic recycling
    * Comply with environmental regulations for quarrying and mining operations
    * Comply with certification and verification standards for carbon credits

Data protection and privacy

    * Comply with GDPR and other data protection laws
    * Data minimization principles for protecting sensitive business information
    * User privacy policy

AML/KYC

    * Anti-Money Laundering Policy for Token Issuance and Trading
    * Risk-based customer verification process
    * Suspicious transaction monitoring and reporting system

Auditing smart contracts

    * Mandatory third-party security audits
    * Type validation and vulnerability analysis
    * Upgrade and emergency response mechanisms

Dispute Resolution

    * Multi-level dispute resolution mechanisms
    * Arbitration clause and jurisdiction designation
    * Initial dispute arbitration through DAO governance

Insurance & Collateral

    * Operational risk insurance
    * Smart contract insurance
    * Reserves to protect token holders