Regulatory Frameworks & Smart Contracts?

October 17, 2017

How to Promote Innovation, Transparency, and Trust

Much has been and will be written and talked about centralized regulatory authorities wanting to regulate decentralized technologies and the organizations created by them. As funny as that may seem, there is some logic behind it and hopefully, a middle ground for everyone to claim a win.

What if a framework – like some of those listed below, could be the start of a Smart Contract? If even the most fundamental details were fleshed out, then those conditions could be codified. In cases where compliance could not be automated, humans, or, “Oracles” could be used.

In Blockchain Ethereum speak, there’s the ERC20 Token Contract Standard, that serves as the foundation for Distributed Ledger Technologies (DLT) Companies’ newly minted tokens. What if there was the Compliance Standard and jurisdictions could programmatically extend it to suit their requirements? Then anyone could query, or, report on DLT Companies’ compliance statuses – like having a Compliance Dashboard.

Peer, or, market pressure would motivate DLT Companies to implement the standard – not any one central authority. Even better, a network of decentralized central authorities (funny, eh?) would drive adoption, further reducing friction.

The Compliance Standard would not only serve to guide DLT Companies, but it would also help onboard other jurisdictions implement their own, thereby enabling and promoting innovation, transparency, and trust.

Inspired By

Gibraltar: Does Statement on Initial Coin Offerings Include New Regulatory Framework? | Crowdfund Insider, October 15, 2017 @ 4:17 pm By Joey Garcia and Joshua Ashley Klayman Kuzar

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