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How Blockhaus Can Get the Crypto World Regulation Ready

“The age of tokenized ecosystems is upon us, but we will only achieve its immense potential if we ensure the technology is adopted responsibly.”

With recent government intervention plunging the global cryptosphere into a period of uncertainty, it’s easy to see regulation and blockchain as diametrically opposed. However, such thinking is limited and short-sighted. The Chinese ICO ban was not done out of spite for digital currency, but is a responsible (if heavy-handed) remit of a government protecting its citizens, many of whom had been scammed by fraudulent ICOs running rampant outside of regulatory systems. In America, the SEC has already released a statement acknowledging a difference between coins and tokens, but an as-yet-unclear type of sanction seems inevitable at some point in the not-so-distant future.

The cryptosphere need not be at odds with legal systems around the world. In fact, if we seek to build something truly long lasting, something that interfaces with our current world, we must instead begin to think of how to integrate the new world of tokenized ecosystems with existing regulatory mandates.

At SingularDTV, we are and have always been committed to developing necessary legal frameworks, both for our company and for the protection of artists who will use our platform. In this mission, we have partnered with crypto valley law firm MME. Headquartered in Switzerland, MME diligently works with Swiss lawmakers to build forward-thinking legislation for crypto companies and has transformed SingularDTV into a standard of Swiss regulatory compliance.

We are now pleased to announce that this work with MME has yielded a new strategic partner: Blockhaus Investment AG, a tokenized ecosystem investment and consulting platform that will enable blockchain-based businesses to earn government approval.

Co-founded by SingularDTV’s own Arie Levy-Cohen and Luka Muller of MME, Blockhaus is leading efforts to integrate blockchain capabilities into existing regulatory, tax and legal frameworks, as well as educate the global community to develop a common understanding and language of the possibilities afforded by blockchain. For example, it is through the collaboration with Blockhaus that we have developed the language and structure for Token Generation Events (TGEs) — a distinct process from ICOs.

In collaborating with SingularDTV, Blockhaus has developed a successful model of a crypto company meeting legal and regulatory compliance. The company’s list of services is diverse and thorough: from business model consulting and white paper evaluation, to smart contract development and implementation, to tax advice & structuring, as well as Know Your Customer and Anti-Money Laundering (KYC/AML) compliance.

KYC/AML — Know Your Customer/Anti-Money Laundering — is a government-mandated requirement for businesses to vet their customers and clients to protect against money laundering, terrorist funding, market manipulation and securities fraud. This type of vetting has traditionally been more difficult in the anonymity of the cryptosphere, but Blockhaus has worked with Centrality to develop the Blockhaus Token Sales Application. This application follows a managed process for onboarding investors, promoters and distributors that prevents bad actors from using token sales as a platform for illicit activity.

Centrality, an Auckland, New Zealand based tech development house, is leading the charge towards responsible Token Generation Events in collaboration with Blockhaus.

Centrality’s innovative approach combines blockchain with more traditional digital tech to validate users and link those users to blockchain wallets from which they can transact. Potential investors and clients register with a range of data depending on their local requirements and the type of entity they are. This can include email address, cell phone number, photo and government ID. The program uses email and SMS code verification to confirm ownership and runs facial recognition biometrics on a photo to prevent bot usage.

From there, the system utilizes the government ID to check against various records, including insurance, fraud, crime & sanction lists. Once the customer has been verified and approved, they will link their identity to a wallet address. The user will be required to prove ownership of this address by signing a message with their private key. Only this authorized account can participate in sales, and it is periodically checked to maintain proof of ownership. The token purchase itself is totally decentralized, and Blockhaus and Centrality never have access to or store the private key or currency.

Furthermore, different tokens can be made available to different buyers depending on the rules in their jurisdictions allowing a token launch to be fully compliant with laws that vary country to country. There are additional fraud detection processes that continue to flag suspicious behavior during the sale as well as provide real time sales performance reporting. The system automates any commissions payments to influencers, advisors and distributors and provides a full post sale audit trail.

Blockhaus’ Token Sale Application by Centrality is a revolutionary advent in the endeavor of building blockchain-based businesses that meet regulatory standards. This new era of government and crypto cooperation is perhaps the only development that will allow the cryptosphere to flourish and achieve lasting innovation. The age of tokenized ecosystems is upon us, but we will only achieve its immense potential if we take the opportunity to ensure the technology is adopted responsibly.

Learn more about Blockhaus here.

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SingularDTV

SingularDTV

SingularDTV is laying the foundation for a decentralized entertainment industry. https://github.com/SingularDTV