What is Vega’s approach to regulatory compliance?
I found answers to this question on the forum, but they are nearly one year old and so much has changed in the past year in this space (BitMex is requiring user identity verification going forward, EU looking to regulate DeFi). Has anything changed in Vega’s approach to regulatory compliance? I thought this topic deserves its own post on the forum as it’s one of the most frequent questions I hear every time I speak about Vega. I am aware that the team is designing tools that will allow people to prove their regulatory status via cryptographic signatures from trusted parties. Is there more info on how will that work?
I found @barney post from October 2019 commenting on this matter:
Firstly, we’re creating a protocol and some software that implements it, but we won’t be running any platform, exchange, etc. That will be done in a decentralised way by all the people who download the software and choose to run nodes and crreate a network and trade together. In that sense, Vega is more like bitcoin or Ethereum than an exchange, and we’re certainly not offering any derivatives products ourselves. So the rules you mention, for instance, won’t apply directly to us (though maybe to some participants — see below.) On the other hand, though, people and organisations that use Vega to trade or market make will be creating, buying, and selling products between each other. Depending on where they’re based, and what they’re doing, they will often need to abide by local regulations. Vega don’t think this is going away, and so we are in the process of designing tools that will allow people to prove their regulatory status via cryptographic signatures from trusted parties and specify their compliance constraints. The goal is to ensure that everyone can comply with the rules they need to within the framework provided by the protocol itself. Vega’s research team are still working out some of the details on this and there will be more to share in the coming months.