Regulatory compliance: critical for blockchain trust
In order to deliver on the promise of the next-generation blockchains, Chia believes that we must be regulatory compliant globally. We’ve stated our goal to become a public reporting company subject to the Securities Act of 1934 to enable full transparency into activities that influence the Chia Blockchain. Contact our team at firstname.lastname@example.org to learn more.
Protecting consumers is the only way to truly change the world
We’re engaging in consistent dialogue and education efforts with policymakers, regulators, and governments around the world. We believe the current regulatory frameworks can and should apply to digital assets and blockchains, protecting consumers and other end users without stifling innovation. Our compliance efforts focus on driving adoption of cryptocurrency and blockchain technology, while simultaneously pushing the industry to provide greater protection for consumers and end users from illegal activities and fraud.
Chia’s compliance efforts
Chia is compliant, working to ensure our approach offers the transparency and auditability necessary to build trust with consumers, enterprises, and governments.
- Chia recognizes that compliance with financial regulations is the only way to build a blockchain that the world can trust and rely on. In a US context, we let our securities be securities and our commodities be commodities, with the view that both the SEC and the CFTC have a place in regulating our activities.
- We’ve announced our intention of becoming a public reporting company subject to the Securities Act of 1934, which means we are planning to be fully transparent and compliant with regulatory requirements prior to any securities offering.
- Chia is funded by reputable investors including Andreesen Horowitz, Richmond Global Ventures, Slow Ventures, True Ventures, Greylock, and DCM. We raised this funding by selling preferred stock, the tried-and-true method of Silicon Valley, VC-backed startups on their way to becoming public.
- Chia’s pre-farm native currency, XCH or chia, has never been sold by Chia Network as an investment. This is a strategy counter to the unregulated “pump & dump” initial coin offerings (ICO) that have contributed to volatile prices and trading and left many consumers “holding the bag.” We and the SEC agree that most ICOs are illegal unregistered securities offerings. Unlike much of the industry, we don’t believe the Howey test is difficult to apply, are confident that XCH doesn’t constitute a security under Howey, and have proactively engaged with the SEC.