1/ What is “geo-fencing” and why is it important for regulated digital assets?

Here's you crash course on the topic and why #EOS #ProFi can fully embrace this extraordinary new potential and transform capital markets.

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2/ Geo-fencing in simple terms means establishing a virtual perimeter around a real-world geographic area that enforces regulatory rules defined by a government or regulators.

3/ In the context of Chintai, smart contracts enforce pre and post-trade local jurisdictional compliance rules to ensure geo-fencing requirements are maintained at all times.

4/ Every time a user on the Chintai platform attempts to make a trade or commit other actions, smart contracts automatically cross check the users jurisdiction and regulatory requirements to ensure compliance.

5/ If a user is attempting to make a trade that is not in compliance with applicable regulatory rules, the trade will be rejected.

6/ So why is this such a big deal? One of the biggest liabilities for issuers in countries like the United States is non-compliance, and associated operational and reputational risk.

7/ Issuers must be able to provide records to regulators at all times that prove the asset they issued is only ever owned or traded by eligible investors, conduct on-going monitoring and reporting (STRs etc.) and more.

8/ The current system for maintaining records and compliance is outdated, slow and requires many manual processes - the result is very high upfront capital requirements for issuers and decreased issuance margins.

9/ The administrative costs of compliance alone make issuance unrealistic for many companies (small to midsize or SME’s). This stifles potential innovation and arguably creates anti-competitive markets.

10/ So even though the 2012 Jobs Act in the United States made fundraising easier for startups and SME’s, most are still not able to raise funds because of the costs associated with compliance and other forms of administrative overhead.

11/ By automating many aspects of compliance within the trade lifecycle, we can offer SMEs a new range of tools that unlock access to investment capital.

12/ Not all distributed ledger technology protocols are made the same. #EOSIO is by far the most practical and sensible choice. It’s the only protocol that is capable of hosting every trade and action with sub-second transactions that cost a fraction of a penny.

13/ This allows Chintai to keep every action 100% on-chain. Without #EOSIO processes go off-chain, transparency is forfeited and the advantages described above are degraded or lost entirely in some cases.

14/ You can read more about this topic and much more at http://Chintai.io