Singapore-based, decentralized exchange, Orderbook — a creation of the blockchain solutions provider, Ambisafe — announced last week a “regulation aware protocol” (RAP) token to make sure that initial coin offerings (ICO's) and other cryptocurrency-related transactions are regulatory compliant. According to Orderbook, its system works through keeping track of regulation in different jurisdictions, as well as a database that tracks RAP token users’ credentials.
RAP tokens use smart contracts to check and respond to the permissions of every person who attempts to use them in a transaction, according to Orderbrook's statement. If a user who does not meet the proper compliance level attempts to buy a token, the relevant smart contract compares their permission level against an internal database, and instantly restricts their account from completing the purchase.
Orderbook stated that its protocol also introduces vast improvements to the user experience by not requiring contributors to re-submit their credentials every time they join a new token sale. If their information is kept up-to-date within the RAP database, they will be able to freely interact with any sale that matches their level of compliance.
“We have created RAP tokens to be the perfect instrument for a new generation of financial innovation,” stated Orderbook CEO Andrii Zamovskyi. “We believe in the migration of financial markets to this new technology in the near future. It is a big step for Orderbook, and a huge leap for Blockchain technology.”
Orderbook claims to be the only exchange that creates and supports the necessary registries of verified Blockchain users, storing them in a specialized smart contract. But the company believes that it won't be long before others are convinced of the necessity of this measure. “As the technology progresses, the benefits of maintaining verified user databases will become increasingly valuable, leading to more providers incorporating RAP tokens into their platforms,” said the company.
For more information on Orderbook visit: https://www.orderbook.io/#/
For more information on Ambisafe visit : https://www.ambisafe.co/