🏛️Mystiko Compliance

Mystiko.Network is an autonomous, decentralized, and 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 ZK environment in Web3.

Although the ZK transaction features of blockchain technology allow people to fully enjoy their fundamental rights to their data protection, abusing such features for malicious activities could bring harm to societies and these risks should be controlled.

Freedom does not come without compliance. Using Mystiko.Network should not equate to or be regarded as using it for illicit activities. Mystiko.Network users cannot use it for the purpose of conducting illicit activities or assisting such activities.

In an effort to address the above issue, Mystiko.Network has deployed 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.

  2. Auditable ZK transaction mechanism

    • Mystiko designed the first decentralized auditing system for onchain ZK 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 identity of regular users.

  3. Auditing

    • The 1st round of Mystiko.Network smart contract audit has been completed by ABDK Consulting, and the final audit report will be released once ready.

As a continuing effort towards compliant safety, Mystiko DAO is constantly accepting more compliance tool suggestions. Please join the #compliance-talk channel in Mystiko discord for more discussions.

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