Admin, this might have been answered already: I was always

convinced about the fact that KYC is the way to go, also with regard to upcoming krypto regulation in many countries. We have been told many times in here that Coti is "regulation ready". How does that change now since the treasury will give up KYC and what are the consequences with regard to regulation?

COTI V2 introduces a fundamentally different economic framework compared to its predecessor, the existing COTI network. This evolution is driven by the network’s unique features and its compatibility with Ethereum Virtual Machine (EVM), allowing developers, DAOs, and dApps to seamlessly integrate and utilize the network. COTI V2 embraces an open, public, permissionless network model.

I don't see the link yet with regard to regulation. What is the effect? Why was it so important to do KYC in the past with regard to regulation and now it's not anymore. What are the risks to give up KYC?

Kindly wait for the V2 whitepaper

Ok. I was just asking in general. There are no fundamental changes with regard to regulatory guidelines (to my knowledge) but Coti turned 180 degress when it comes to KYC. So again, don't understand it and I assumed there is a general explanation to it for all blockchain projects that do without KYC. Just wanted to know the risks to do that step.

Coti V1 was a private payment network to connect with the banks or private companies. Coti V2 will be a free Blockchain (using consensus security of ETH) where evoreryone can build what he want.

I see, but what if KYC will be a requirement according to upcoming regulation (for example in the US)?

A free blockchain like Bitcoin or Cardano can not be forced to be regulated, only blockchains with "one" owner ;-)

We don't know yet, really, I guess. It's not yet decided what is a security and what not. Agree?

wen?

with V2 Coti will move from a private company offering services to a L1 where other parties can build on top of it. So every project building on Coti should implement a kyc if they need it or want it. Im pretty sure there could be trouble (in the future) in letting people using the treasury without Kyc, because that is still implemented by Coti. Geo locking will not be sufficient given the fact that a VPN could easily “fix” that.

The point is here from my side. There are people pro Blockchain (gives more power and rights to the people in the world) and people against blockchain. Mainly governments with central banks try to forbid or destroy free blockchains. Because they are afraid to loose power. E.g. in Europe government is at the moment a proposal in discussion to kyc all wallets(also hardware wallets). To discuss security is also one possible way to gain control, but they know its not really possible with Bitcoin & Co. But it would be easier with centralised chains. ;-)

Coti has no branch in the US or whatsoever so they got no juristiction

Regulations are coming even in Europe tho And when the times comes definitely you need to comply with it, unless Coti wants to add European people to the list of restricted areas When regulations will be placed, a treasury only geo locked, could get Coti in trouble. I could use it to anonymously launder some “money” Hopefully regulations will be implemented after Coti will touch ATH at least

Well, there are regulations in Europe. That's why Coti won't be a problem here. The problematic countries are the ones with no clear regulation, where their regulators (SEC) get to pick and choose who they'll bully next. Europe will be fine, i hope.

Will the white paper explain why we no longer need KYC your saying?

As far as I can tell Coti V2 plans seem to be in contradiction to current EU Mica rules. The team must know something I don't; However current Mica rules state Coti will have to state how all of their assets are managed and backed (100% proving all funds are where the team states they are). All stakers will have to provide accurate information about identity, location and contacts. Records of every transaction across all chains will have to be kept for a minimum of 5 years. Coti will be legally required to co-operate with any EU authority requesting information. Coti will also have implement procedure to prevent fraud, money laundering or terrorist financing. Any security breach will have to be reported within a set timeframe Coti will also have to seek permission in advance of permitting staking. That reads like KYC to stake to me. But Coti has the legal team, so I'll defer to their knowledge

Are these rules already applied? Cuz i am not aware of them

They come in at some point in 2024 and will have a 4-5 month period to come into compliance. I also saw a June 2023 date so it's confusing. Also Mica doesn't mention staking even once but it does say something along the lines of crypto-asset service providers are not allowed to grant "interest" when providing crypto-asset services related to ARTs and EMTs. The regulation covers any remuneration or any other benefit linked to the length of time during which a holder of ARTs or EMTs maintains their holdings. This includes net compensation or discounts equivalent to interest received by the holder directly from the issuer or third parties, and directly associated with the ARTs or EMTs or from the remuneration or pricing of other products. That reads like the way out treasury works

its all so confusing to me 😅 lets see what the team has to say about it. i hope they are well prepared for it

Стикер

I'm sure their lawyers have gone through it all, and they seem fine toet the team conttinue.

It appears that mica law is even more restrictive and would not permit a treasury without KYC. I cannot imagine that coti would not be prepared for this. However, it is a surprising course of action to take as regulations become stricter. @zippy : thank you for sharing!

Well, staking isn't mentioned as such in Mica, just time-based awards and also Mica states that parties should know the identities of those they interact with. Coti and May in the crypto industry will most likely wait and see what Defi does in this regard, as one of the main points of Defi is that you are not identified, unless you wish to be so.