Below is an extract from V1 of COTI's Overview Document.

Early adopters of digital currencies have long held the view that digital currencies will continue to thrive outside the strictures of governments. Like the internet before it, digital currencies will only come of age — and yield the most significant benefits to consumers and businesses — by operating within the bounds of the laws and regulations of sovereign states.

For digital currencies to achieve widespread adoption in Payments, digital currency-related organizations — whether decentralized or not — will need to adhere to the laws and regulations of the Jurisdictions in which their end-users reside. And in the absence of digital currency-specific controls, organizations should take a proactive approach by adhering to the know-your-customer (KYC) and anti-money laundering (AML) standards which are now commonplace in the provision of money services.

Although digital currencies are primarily unregulated, regulatory authorities in several jurisdictions have grown increasingly outspoken about their intentions to implement digital currency-specific regulatory regimes.

Some jurisdictions — including Ecuador and Bangladesh — have altogether banned the use of Bitcoin and other digital currencies, yet much of the recent regulatory attention has centered on initial coin offerings.

To promote the onset of suitable digital currency-specific legislation, the COTI team and its legal advisors are working with regulators globally to help shape the relevant regulatory frameworks, and to share COTI’s expertise as a global digital currency initiative.

Learn more at https://www.coti.io/