Token Sales, ICOs, Token Generation Event, and contributing a cryptocurrency in exchange for another one at a later date, has received a lot of heat from regulatory groups internationally.
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The United States and USA and South Korean residents have typically being excluded from these kinds of events due to the strict restrictions regarding cryptocurrencies within their jurisdictions.
No Universal Standard Of Regulation Creates Ambiguity
Part of this lies in the ambiguity when it comes to tokens, with no set universal standard on how they should be handled. Many countries and even investors would rather deny something then participate in something seen as legally grey.
Orderbook by Ambisafe looks to fix this with their Regulation Aware Protocol, which will utilize a whitelist to keep track of who is able to buy, sell, and trade each asset. This will help take some load off the shoulders of coordinators of such crowdfunding events, that usually have to be mindful of different regulation and rule that must be followed, two of the most prevalent being Know Your Customer (KYC) and Anti Money Laundering (AML).
Andrii Zamovskyi, CEO of Orderbook and founder of Ambisafe Believes that the company has come up with the perfect instrument for a new generation of financial innovation, the RAP token.
He also believes in the migration of financial markets to this new technology in the near future. It is a big step for Orderbook and a huge leap for Blockchain technology.
Powered by Smart Contracts
RAP will be powered using smart contracts, checking and responding to permission of all persons attempting to make a transaction. If proper compliance levels are not meant during this purchase attempt, the smart contract will compare their permission level against an internal database, and instantly take action in preventing their account from completing the purchase.
Not only will RAP allow creators to create tokens that will comply by a broad spectrum of regulatory requirements, but it will also improve the experience in general since contributors no longer need to re-submit for every new token sale. This allows them to focus more on which tokens they are interested in and being able to interact with each sale that matches their compliance level.
Bright Future For RAP
While Orderbook is currently the only exchange able to create and support the required registries of certified blockchain users and store them in a specialized smart contract, as the technology improves, maintaining verified user databases will become more valuable, which will lead to more providers incorporating RAP tokens into their platforms as well.
RAP may even let the United States and South Korea residents participate in Token generation Events once again since their regulatory restrictions are so complicated many projects just bar citizens from these countries from participating outright.
This protocol complements well with the rest of Ambisafes offerings for issuers, exchanges, middleware services, as well as third-party services. Ambisafe customers are already able to create asset managers, wallets, blockchain explorer, as well as dividend reports, and this will prove to be a useful tool in people’s arsenal as well.