The SoftDAO seeks a long-term integrative partnership with a compliance provider for token launches and any other compliance needs. Compliance providers will need to be able to accomplish the following tasks:
- Safely and securely collect, analyze, and evaluate user’s personal identifiable information to determine eligibility to participate in regulated, compliant token sales. These tasks include but are not limited to:
- ID/Document verification
- Selfie Verification
- AML/Sanctions Screening
- Sybil resistant user management
Abide by and enforce all GDPR compliance procedures and laws.
Produce access lists for sales based on token issuer’s risk tolerance.
Perform Proof of Address verification as needed.
Perform Accreditation verification as needed.
Perform Entity/Institutional verification and beneficial owner verification as needed.
Have a legally acceptable AML manual and any accompanying procedures required to complete manual verification as needed.
Any compliance provider will be integrated with the core service provider for SoftDAO
- Applications should provide a detailed proposal including:
- Specific deliverables: What will the compliance provider do?
- Time line for deliverables: when will this happen?
- Qualifications: why is this team the best choice? Provide references or past projects the compliance provider has managed.
- Alignment: how will both the compliance provider and DAO benefit?
Once approved, the Compliance Provider is responsible to operate as identified in the Compliance Provider Agreement.
If an application is approved, the SoftDAO will select a compliance provider to integrate with the service provider and implement compliance KYC/AML services.
Token sales, airdrops, and NFT sales are all highly susceptible to sybil attacks where one user or group of users is able to commandeer a larger allocation of an asset than is intended by the issuer. This has longterm negative impacts on the success of the token and project and keeps the asset out of the community members that matter most to the project. Compliance and KYC/AML processes aim to verify the identity and detect similarities between applications and groups of applications to reduce the preponderance of sybil attacks. Therefore, the most important part of the token sale is who is able to participate! Compliance and KYC/AML processes allow projects to ensure the best possible and most dedicated users are able to obtain the issued asset instead of bots or misaligned syndicates.
The compliance provider will be the front door to all of the SoftDAO projects and will need to maintain a vigilant eye out for bad behavior. Further, in order to hold compliant token events, it is prudent and necessary in most legal jurisdictions to Know Your Customer (KYC) before any funds can be transferred. Other jurisdictions also deem some parts of the world, countries and/or regions to be outside of their risk tolerance for conducting business. The Compliance provider will need to be able to filter all of its users for a given even through these criteria to ensure the issuer holds a legally compliant event.
Compliance is the backbone upon which successful sales are built.