Delegate your votes to experts on OpenGov

[rich]

In very simple terms delegation means when you receive or delegate votes, you take on a set on unknown legal liabilities, tax and compliance.

Are you personally doing KYC/AML on these accounts? Probably not…

@laurogripa

We did discuss in the past the possibility of becoming a sort of DAO and managing the funds with proposals and members voting, but we received a no-go from Parity/W3F regarding concerns with regulations. In order to be clear of any regulatory implications, it would basically require every member to be KYC’ed before letting them vote, which would be a pretty annoying and contradictory thing to do on a privacy-preserving pseudo-anonymous society.

@mister_cole

are you referring to a specific policy statement, law, or ruling in any particular jurisdiction, and is there somewhere we can go to examine it ourselves and/or run it by our counsel?

Talk to any (non crypto) lawyer experienced in KYC/AML regulations and ask them about delegations.

The challenge will be you might be in one jurisdiction - say France, but you receive delegations from say, the US. Or maybe you’re in the UK, and you delegate votes to a ‘verified on-chain identity’ who happens to be in North Korea. You can see where it gets to become a real mess…

Its the same for Legal status of Kusama / Polkadot DAOs - we need to get ahead of this.

CFTC’s Ooki DAO Action Shatters Illusion of Regulator-Proof Protocol

CFTC Imposes $250,000 Penalty Against bZeroX, LLC and Its Founders and...

Having already been on the receiving end of VAT issues here in the UK VAT on Services in/to the ecosystem based on on-chain services, I am counselling you to be careful. The implications are real.