@react-spectrum/label

Contracts for Regulated Tokens

Regulated tokens essentially are ERC-20 tokens, but with additional checks for transfer/transferFrom functions. These checks must be carried out to comply with different laws regarding securities in different countries.

How it works

1. Investor identification is done using one or more Investor Data provider (https://github.com/daonomic/contracts-regulated/blob/master/contracts/InvestorDataProvider.sol)
2. After that different jurisdiction regulation rules are applied. If all checks pass, then transfer is allowed

Investor Data provider

Investor Data provider is Oracle which has one function:

    /**
     * @dev resolve investor address
     * @param _address Investor's Ethereum address
     * @return struct representing investor - its jurisdiction and some generic data
     */
    function resolve(address _address) public returns (Investor);

investor is declared as following:

    struct Investor {
        uint16 jurisdiction;
        bytes30 data;
    }

• jurisdiction is jurisdiction id. Currently supported jurisdictions are stored here: https://github.com/daonomic/contracts-regulated/blob/master/contracts/Jurisdictions.sol
• data is arbitrary data (specific for investor's jurisdiction, for example, for US 1st bit of information tells if investor is accredited)

This data should be stored on-chain.

Supported providers

Our platform supports any KYC provider available:

• issuer can check investor's status by himself
• or select any present KYC provider (platform supports any KYC provider available with little or no development)

Regulation rules

Excerpt from https://github.com/daonomic/contracts-regulated/blob/master/contracts/RegulationRule.sol:

    /**
     * @dev Regulated tokens should call this when new tokens are minted
     */
    function checkMint(address _address, uint256 _amount, Investor investor) public returns (bool);

    /**
     * @dev Regulated tokens should call this when tokens are to be transferred from investor's account
     */
    function checkTransferFrom(address _address, uint256 _amount, Investor _investor) public returns (bool);

    /**
     * @dev Regulated tokens should call this when tokens are to be transferred to investor's account
     */
    function checkTransferTo(address _address, uint256 _amount, Investor _investor) public returns (bool);

RegulationRule should define any logic specific for investor's jurisdiction. For example, if investor is from US, he must be accredited investor to buy tokens (https://github.com/daonomic/contracts-regulated/blob/master/contracts/UsRegulationRule.sol)

Support for Exchanges

One more function needed to provide better UX with regulated tokens exchange: Exchange should filter investors who can buy/sell regulated tokens. This can be done through simple check function:

    /**
     * @dev Check if investor is able to receive token
     */
    function ableToReceive(address _address, uint256 _amount) constant public returns (bool);

Exchange should create/fill orders only for investors passing this check. Otherwise orders will fail on the fill step