Radar Relay Regulatory Strategy Update
Balancing passion with pragmatism
We last wrote about our regulatory strategy in October of 2017. This past year, we served users in over 150 countries, raised two financing rounds, and expanded to almost thirty people. In short, a lot has happened. It’s time for an update.
Many of our products, like Relay, will create new categories and may introduce more questions than answers. Our mission, hardwired into our DNA, of a global, transparent, participatory financial system gives us the courage to innovate. This post explains how we’re navigating a complex and evolving regulatory landscape for Relay.
We didn’t set out to design a platform to be exempt from exchange regulations. We started with the product vision. We believe people anywhere in the world should be able to trade and settle peer to peer. In fact, we believe this level of financial agency is damn close to a human right.
Before we launched we worked with our attorneys to balance our passion with pragmatism. We believe the regulatory landscape needs to evolve in tandem with the blockchain community. The only way to ensure the success of blockchain technology is to work together, shoulder to shoulder, with regulators. Together, we came to two conclusions.
First, Relay will maintain the characteristics of a passive online bulletin board. This means, as a relayer, we operate in a passive system. We will NOT take custody, match buyers and sellers, give investment advice, participate in price negotiations, receive transaction-related compensation, nor execute transactions.
Second, Relay will always have a meticulous token compliance process, mirroring regulatory guidance, to avoid listing securities. Since launch, we’ve had a full-time Director of Token Analysis, who leads due diligence and works with token issuers to complete our compliance documentation.
We’ve been paying close attention to the guidance and actions of the regulators overseeing all aspects of our industry, prompting us to evolve our regulatory strategy. Relay will begin implementing OFAC compliance measures. These measures are designed to reduce the likelihood Relay will be used by bad actors in violation of U.S. sanctions laws.
We’re a real team, of real people, here in the U.S. using blockchain technology as a way to create financial agency and accessibility, not as a way to avoid regulatory compliance. With one foot firmly rooted in the present and one in the future, we acknowledge the significance a mature regulatory system has in the success of creating an enduring multigenerational company.
If you have questions, please reach out to firstname.lastname@example.org!