Regulation Aware Protocol (RAP) for Security Tokens on Ethereum
By Oleh Vasylenko
updated about 1 month ago
Enforcing security token restrictions on blockchain
In 2018 Ambisafe has created a unique Regulation Aware Protocol (RAP) token which uses smart contracts to keep track of rules who is allowed to buy, sell, and trade each asset. For a RAP-enabled token issuer can configure in which countries and to whom the token can and cannot be sold. If a user who does not meet the proper compliance level attempts to buy a token, the relevant smart contract compares their permission level against an internal database, and instantly restricts their account from completing the purchase.
Identity confirmation on blockchain
The Regulation Aware Protocol does more than allow creators to craft tokens that meet diverse regulatory requirements, however. It also introduces vast improvements to the general user experience by not requiring contributors to re-submit their credentials every time they join a new token sale. If this information is kept up-to-date within the smart contract database, they will be able to freely interact with any sale that matches their level of compliance.
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