XIV. Legal & Regulatory Compliance
14.1 Overview
Aurion’s legal framework ensures that every on-chain component — from token issuance to RWA custody — adheres to leading global virtual-asset regulations.
The framework is jurisdiction-agnostic yet regulation-aligned, merging smart-contract transparency with traditional financial safeguards.
Aurion operates under a multi-jurisdictional model:
🏛️ Core Foundation Domicile: To be registered in a blockchain-friendly region (e.g., UAE VARA or Cayman DAO Foundation).
🏢 Operational Entities: Subsidiaries handling compliance, RWA onboarding, and partnerships.
🪙 DAO Governance: Codified via on-chain procedures and public reporting.
14.2 Regulatory Objectives
Protect all participants through KYC/AML compliance and transparent disclosures.
Ensure alignment with MiCA (EU), VARA (UAE), and FATF global standards.
Enable legal ownership of tokenized RWAs via SPV structures.
Maintain audit transparency with notarized on-chain proofs.
Facilitate interoperability with institutional custodians and exchanges.
14.3 Framework Alignment
Framework
Jurisdiction
Key Requirements
Aurion Implementation
MiCA (EU)
European Union
Defines crypto-assets & disclosure duties
AUR = utility token; RWA tokens follow asset-referenced model; full whitepaper disclosure stored on-chain.
VARA (UAE)
Dubai & Abu Dhabi
Licensing for Virtual-Asset Service Providers
Aurion Foundation to register under VARA VASP for RWA marketplace and issuance.
FATF Standards
Global
Travel Rule, AML/KYC, CFT obligations
Integrated AML modules, risk-scoring APIs, and compliance oracles for gateways.
SEC / Howey Test
United States
Distinguishes securities vs. utilities
AUR designed for platform utility; non-profit foundation avoids profit-sharing.
CRS / OECD Reporting
International
Data-sharing & transparency
DAO-approved data-reporting for institutional pools.
14.4 Corporate Structure
Aurion Foundation (Parent DAO Entity)
Governs IP, treasury, and DAO policy.
Holds licensing under its registered jurisdiction.
Aurion Labs Ltd. (Operational Subsidiary)
Oversees development, integrations, and exchange listings.
Aurion Assets SPVs
Hold legal ownership of RWAs; each maintains custodial and financial audits.
Independent Auditors & Legal Advisors
Perform quarterly reviews on treasury, smart contracts, and compliance.
14.5 Compliance Mechanisms
🔐 KYC/AML Gateway: Integrated in Aurion Pay API before any fiat or RWA transaction.
🧾 Whitelist Contracts: Allow only verified wallets to access regulated tokens.
🪪 Document Hashing: All agreements notarized and hashed on-chain for immutability.
⚖️ Legal Oracles: Validate off-chain contract authenticity and custodian records.
🚨 Incident Protocol: DAO-approved process for dispute resolution and emergency suspension.
14.6 Token Classification
Token Type
Classification
Purpose
AUR Token
Utility Token
Powers governance, staking, and fees.
RWA Tokens
Asset-Backed Tokens
Represent real-world ownership or debt; registered under jurisdictional frameworks.
Stable Instruments
Settlement Medium
Used for payments; never issued directly by Aurion.
This structure ensures compliance while preserving a seamless unified user experience.
14.7 Data Protection & Privacy
Aurion complies with GDPR and UAE Data Protection Laws, implementing:
End-to-end encryption for KYC data.
Minimal data retention via non-custodial model.
Zero-knowledge “KYC-Pass” proofs (under active research).
DAO-approved data-sharing policy preventing misuse of personal data.
14.8 Audit & Reporting
🔍 Smart-Contract Audits: Conducted by multiple third-party firms before deployment.
🧾 RWA Audits: Quarterly reviews by regulated accounting partners.
🧑⚖️ Regulatory Liaisons: Legal teams maintain communication with global authorities.
All reports are published on the Aurion Docs Portal and verifiable on-chain.
14.9 Legal Disclaimers
Aurion’s publications are not investment advice and should not be interpreted as solicitation. Participation in AUR or RWA programs is voluntary and subject to local regulations.
All forward-looking statements involve risk and depend on evolving market and regulatory conditions.
14.10 Commitment to Responsible Innovation
Aurion’s guiding legal principles:
Transparency First — Every contract is open-source and auditable.
Compliance by Design — Legal obligations are encoded directly into protocol logic.
Sustainability of Trust — Balancing decentralization with institutional standards to build the world’s most compliant, future-proof DeFi-RWA ecosystem.
Last updated