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Mystiko Compliance
Mystiko.Network is an autonomous, decentralized, permissionless code protocol. Though Mystiko.Network’s code is self-executing, it is designed to comply with regulations against malicious and illegal activities for a healthy financial privacy environment in Web3.
Freedom does not come without compliance. Using Mystiko.Network does not mean illegal. Mystiko.Network has the following built-in compliance mechanisms/tools to fight against malicious and illegal activities for users and the community.
- 1.Blacklist mechanism based on government sanction lists, e.g. the U.S. OFAC SDN Auditable ZK transaction mechanism.
- Regulators across the globe have been actively monitoring crypto addresses with potential illegal activities or risks. For example, the Office of Foreign Assets Control in the U.S. has a sanction list of crypto addresses. In Mystiko.Network’s design, a blacklist mechanism powered by oracle smart contracts by Chainalysis, is enabled in the original user deposit smart contracts, where a blacklist of crypto addresses can be collected by decentralized and permissionless users from various regulators like the Office of Foreign Assets Control. Crypto addresses on the blacklist will not be able to use Mystiko.Network.
- Reference:
- U.S. Office of Foreign Assets Control: Specially Designated Nationals And Blocked Persons List (SDN) Human Readable Lists https://home.treasury.gov/policy-issues/financial-sanctions/specially-designated-nationals-and-blocked-persons-list-sdn-human-readable-lists
- Cyber-related Designations and Designations Updates https://home.treasury.gov/policy-issues/financial-sanctions/recent-actions/20211108
- 2.
- Mystiko designed the first decentralized auditing system for onchain private transactions. In Mystiko’s decentralized auditing system, a decentralized auditing committee, consisting of reputable institutes and entities chosen by the community, will be established and the committee will support auditing the transaction flow of suspicious deposits from bad actors while protecting the privacy of regular users.
As a continuing effort towards compliant privacy, Mystiko DAO is constantly accepting more compliance tool suggestions. Please join the #compliance-talk channel in Mystiko discord (https://discord.gg/hurmHWUjCW) for more discussions.
Last modified 1mo ago