Legally Binding
Users in the following regions are prohibited from participating in the minting and burning of tokens.
- USA
- Ontario, Canada.
Users in the listed regions must obtain their BTCpx through select distributors required to securely hold the user’s identity information.
Custodians are required to publish details of assets under custody regularly. Failure to meet these criteria can lead to being removed from the network.
It is to be noted that there can be multiple custodians in the network, but this comes at the cost of increased risk exposure to the network. A model where custodianship is shared by different institutions holding keys to a multi-sig wallet is also possible in the future. However, a security breach among any of the custodians could cause the loss of trust and possibly lead to mass withdrawals. A security breach with a distributor is much less severe as custodians will still back up all outstanding tokens, but a loss of KYC/AML user data would be a side-effect.
Last modified 2yr ago