Polybius - What’s Worth to Build a Bank
How do investors who buy tokens ensure that 20% of bank profits will be paid out in dividends each year, and not lower permissions? So, we decided that this was a good reason to discuss how audits and monitoring were conducted in European countries from the regulatory point of view.
Let’s briefly recap the process mechanism: Polybius is currently a work in progress. This is due to the peculiarities of European legislation, which dictates some types of financial institutions. Signing up each requires a bigger clump of money, which comes out of the investor’s pocket. Therefore, the types of licenses we can use initially — from payment service providers to mature banks — will become clear only if ICO is complete. What we know for sure right now is that we will work within European jurisdictions. A brief list of countries we are considering currently licensing has been logged to Switzerland, Luxembourg (for tax laws), Finland and Lithuania (for their commitment to the crypto and block projects).
The final decision remains to be taken, but right now we consider the most attractive option is the country of watches and cheese with a hole: as well as the stability of the legal system and its longstanding banking tradition, Switzerland is one of the first Countries to approve the use of blockchain in financial institutions on Level of regulation, provided that the auditor verifies operational security.
The EU and Switzerland represent a strict regulatory body. Every financial organization undergoes an annual audit, which means that every book cooking while reporting an account is absolutely not at issue. According to current EU regulations, auditors should be screened no less once every ten years. This became mandatory after the bankruptcy scandal at the Enron energy giant in 2001, where one unchanging auditor has been grouping company accounts for 20 years.
Even so, we plan to rotate every three to five years. One of the “Big Four” audit and consulting firms will audit Polybius, possibly Ernst & Young, with whom we’ve negotiated. The audit includes checking balances and expenses, and preparation of calculations for regulators. The auditor’s account is then verified by the state regulator, who checks them with a fine-toothed comb: even if Polybius investors will not read the annual audit results, the regulator will definitely do it. Government officials track the correlation between share capital and loan capital.
They also conducted stress tests, in which the company was asked to explain its action plan in case of unexpected situations. One example is: 20% of your portfolio defaults on their credit (ie 20% of the credits given are not fixed) — what do you do? Besides all this, the regulator also keeps track of who finances the bank: it is prohibited to finance your own company.
The loan portfolio must be diversified and can not be linked to bank shareholders. In addition, European finance officials have the right to attack early in the morning, ie checks without any prior warning.
Russians are accustomed to systems to insure investments operating in Europe; It’s just that the insurance amount is ten times higher: up to € 100,000 is insured for all investors, including non-residents. Either from the point of view of the investor / token holder Polybius, and from the viewpoint of depositors, the EU and Switzerland are predictable jurisdictions.
Whatever type of license we receive as a result of ICO, we will remain a real company under the jurisdiction of local law, and the rights of depositors and investors shall be protected by the laws and the courts of the country where we are registered.
Polybius tokens will be issued at a price of $ 10 each during ICO and guarantee 20% of the bank’s annual profit, as verified by European regulators. On the first day of ICO, tokens will be sold with a 25% bonus above, and over the next four weeks bonuses will be reduced gradually.
ICIO Polybius started this spring. The exact date is announced soon. So you do not miss this event, and to get the token in the first week, while the bonus is still available, sign in to our mailing list on our site: polybius.io. If you are worried about skipping ICO’s first day and wanting to order a token with the maximum bonus, contact us at firstname.lastname@example.org.