Kopalnie Krypto Team - Friday 17 March 2023
Why Chia? Part 3 - company approach, compliance
Time for the final part of the "Why Chia?" series. This installment focuses on describing the new content of the main Chia project website. As a reminder, in the first part, we discussed the practical applications of this innovative blockchain. In the second part, we described selected aspects of the technology that forms the foundation of this ecosystem. Security issues were also addressed. In this last part, we will present the approach taken by the individuals responsible for creating the Chia blockchain. We will also cover the most crucial topic - the project's compliance with legal regulations.
Chia takes a disciplined approach to fulfill the promise that blockchains and cryptocurrencies will become the new Internet for financial markets. The Chia white paper contains detailed information about the transformative impact that programmable digital money will have on finance, enrichment, security, and ultimately the entire concept of trust.
The white paper describes how Chia Network plans to enter the market, leveraging its corporate form for this purpose. It also explains the rules governing the company's use of its pre-farm. The document also presents the tokenomics of Chia. The principles of control are also discussed to ensure that the pre-farm is a safe and predictable tool. Chia Network will use it for development funding and ultimately provide everyone the opportunity to acquire rights to its portion.
The company's plans and structure are unique and encompass various fields of knowledge. These include corporate software sales, blockchain project management, and expertise in securities regulations. The company is well versed in the latter to have the necessary resources to implement the Chia blockchain in the global financial infrastructure.
Chia Network's technology and approach have given rise to a new network characterized by an exceptional level of security, regulatory compliance, and sustainability.
Chia Network believes it must comply with regulations worldwide to deliver on the promise of next-generation blockchains. The company aims to become a reporting public company subject to the U.S. Securities Act of 1934. This step ensures full transparency in all Chia blockchain-related activities.
The company engages in ongoing dialogues with policymakers, regulatory bodies, and governments around the world. It believes that existing regulatory frameworks can and should be applied to digital assets and blockchains. These frameworks should also protect consumers and other end-users without stifling innovation. Chia Network's compliance efforts focus on promoting cryptocurrency adoption and blockchain technology while advocating for greater consumer protection against illegal activities and fraud.
Chia operates in accordance with regulations, seeking to provide transparency and control necessary to build trust among consumers, businesses, and governments. The company recognizes that adherence to financial regulations is the only way to build a blockchain that the world can trust and rely on. In the context of the United States, the company allows its securities to be securities, and its commodities to be commodities. The company also considers itself subject to regulations by the SEC and CFTC.
The company has announced its intention to become a reporting public company subject to the U.S. Securities Act of 1934. This means it plans to maintain full transparency and regulatory compliance before making any securities offering.
Chia is backed by reputable investors, including Andreesen Horowitz, Richmond Global Ventures, Slow Ventures, True Ventures, Greylock, and DCM.
The pre-farm consists of the native currency of the Chia ecosystem - XCH. Chia Network has never sold it as an investment. This is a strategy that opposes "pump and dump" scams, where financial instruments are manipulated by providing false information to potential investors. This method is typically used in unregulated Initial Coin Offerings (ICOs), where capital is raised through cryptocurrency or token offerings. Such scams lead to price and trading instability, leaving many consumers "holding the bag." Chia Network and the SEC agree that most ICOs are, in fact, illegal and unregistered securities offerings. Unlike many others in the industry, Chia Network believes that the Howey Test is not difficult to apply. The company is confident that XCH does not qualify as a security under this test and proactively collaborates with the SEC.
In today's world, finding an ecosystem that complies with legal regulations is quite a challenge. Nowadays, most people have easy access to computers, and creating their own fork of a popular cryptocurrency is not as difficult as it might seem. After familiarizing themselves with the source code and reading the documentation, amateur programmers can make the necessary modifications and release their version of the ecosystem. The problem is that while such a project may look great on paper, it can be completely underdeveloped from a legal perspective. This phenomenon has led to an explosion of hundreds of cryptocurrency projects that completely ignore regulatory compliance.
Chia Network has taken a highly disciplined approach to building its ecosystem. First and foremost, all aspects of the project are described in the business document - the Chia white paper. Additionally, the project is not created by a group of cryptocurrency enthusiasts but rather by a legally operating company with a defined organizational structure. The company places particular emphasis on ensuring regulatory compliance in all countries. This, in turn, instills confidence in the technology being developed by Chia Network. For this reason, this blockchain should be seen as a model in the industry. We can only observe further development of this project and hope it reaches the top.