Regulation

We take regulation very seriously

Although the principles of freedom and decentralized finance (DeFi) are at the core of cryptocurrency, blockchain, and NFTs, regulation of such technologies is essential to avoid misuse and safeguard consumer welfare. However, the legal status of these technologies are uncertain and constantly evolving.

Concerns are raised about how effective the current legal frameworks are. Are agreements made through smart contracts enforceable and valid? Can digital currencies be used as legal tender? Are NFTs governed by securities laws? Can blockchain transaction histories be trusted as proof? What happens if someone loses access to their wallet and NFTs?

Invoice finance/factoring/discounting is not currently regulated in many countries because it is seen as a cash advance on unpaid invoices and receivables. However many jurisdictions insist on money transmitter licences and other forms of compliance before trading.

Cryptocurrency trading is not currently subject to regulation and is not governed by any major specific regulatory framework. This means that, when using cryptocurrencies, you will not benefit from the protections available with regulated services.

The Borroe legal team will have to satisfy that our project falls outside of a debt instrument or a security and make sure we are fully compliant with rules surrounding:

• Collective Investment Schemes

• Financial Instruments rules

• Anti-Money Laundering guidelines

• Portfolio or fund management

As part of our regulatory planning, we intend to work very closely with relevant bodies to adhere to existing and prepare for future regulatory changes that will adversely impact our business and the wider community.

We intend to seek regulation where possible and follow best practice guidelines where rules are still being developed.